Bonding Curve: y = mx+b

How does this bonding curve work?

The formula y = mx + b defines a linear bonding curve where the token price increases at a constant rate as more tokens are bought. Here, x represents the current token supply, m is the slope that determines how fast the price increases, and b is the base price.

When x is small, the price is close to b, meaning early buyers can purchase tokens cheaply. As more tokens are minted and x increases, the price rises steadily in a straight line.

Unlike exponential or asymptotic curves, the price does not spike suddenly — it grows linearly, making the system easier to predict and reason about.

This creates an incentive for early buyers, but in a more controlled way compared to aggressive curves, since the price increase is gradual rather than explosive.

Advantages and limitations

One of the main advantages of this model is its simplicity and transparency. The price is fully determined by a linear equation, making it easy to understand, simulate, and implement in smart contracts.

It also provides a smoother and more predictable price progression, which improves user experience and reduces extreme volatility.

However, the linear model has its limitations. Early buyers still benefit significantly, especially if the slope m is high. As supply grows large, the price can become expensive, but not as dramatically as in steeper curves.

Additionally, this model does not reflect real market demand, meaning the price is purely mechanical and may not align with actual perceived value.