✳️Bonding Curve Backed Group Token

What is Bonding Curve Backed Token?

SuperSquad utilizes MintClub Bonding Curve SDK to mint group token.

A Bonding Curve is a mathematical curve that determines the price of a token in a Base Asset at different supply levels. When tokens are bought, they are minted by the contract, and the corresponding Base Asset is added to the pool. Conversely, selling tokens results in their burning, and the seller receives a predetermined amount of the Base Asset. (by Mintclub Docs)

Structure of Group Token

A group token represents an accountability community, and community operators can issue group tokens when they create their communities. Additionally, community operators can receive a part of the group token as free which serves as an incentive for them to build their community successfully. Here are more details about the group token.

Fee Structure

Each time a group token is issued or burned, the following fees are applied:

• Protocol Fee: 0.6%

• Platform Fee: 2.4%

• Creator free minting: 5% of max supply

Price Curve

The initial version will support only one type of bonding curve, and the variables for the curve are as follows. We will support various type of bonding curve later.

• curve type: exponential

• price variation intervals: 50

• max minting supply: 1,000,000

Pledge Group Token to Join Challenge

Group tokens, minted based on a bonding curve, can be utilized to participate in challenges. If you are a group organizer, you can set the minimum amount of group tokens required for pledging to a challenge, select the type of challenge and its rules, and recruit participants to run an accountability group challenge. If you hold group tokens, you can pledge them according to the challenge rules, verify your completion of the challenge tasks, and upon success, secure your rewards.

Pool Distribution Mechanism

• Failure pool: (1 - success rate) of members under 100% success rate

• Winners: Members with 100% success rate

• Winner distribution: Original pledge + Weighted average distribution of failure pool according to pledge amount