How It Works?
Traditional bonding curves establish a fixed relationship between token supply and price, often represented by a simple function like:
P(S) = k Sn
Where:
P(S): Price of the token as a function of supply.
S: Total supply of the token.
k: A constant scaling factor.
n: Elasticity parameter determining how steeply the price increases with supply.
In the context of DINE, however, the value of $AAA is influenced not only by its circulating supply but also by additional dimensions such as user engagement, platform revenue, and token utility. To account for these factors, we introduce multidimensional bonding curves, which extend the traditional model by incorporating multiple variables that influence token price.
The multidimensional bonding curve can be expressed as:
P(S, U, R, T) = k Sn + Um + Rp + . Tq
Where:
S: Total supply of $AAA tokens.
U: User engagement metrics (e.g., number of active users, interactions, or contributions).
R: Platform revenue generated through ticket sales, merchandise, and other activities.
T: Token utility (e.g., staking volume, governance participation, or redemption frequency).
α, β, γ: Weighting factors for each dimension.
m, p, q: Elasticity parameters for each variable.
This approach ensures that the price of $AAA dynamically adjusts based on real-world usage and value creation within the ecosystem, rather than being solely dependent on token supply.
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