Bonding Curve Financing Regenerative Projects
Using bonding curves to enable continuous token sales that finance regenerative commons projects, providing capital for land acquisition and infrastructure while preventing overselling beyond physical capacity.
What is Bonding Curve Financing?
Bonding curve financing uses bonding curves to enable continuous token sales that finance regenerative commons projects. Instead of traditional fundraising rounds, projects can continuously sell tokenized access rights as demand grows, with prices automatically adjusting based on supply and demand.
This model provides capital for land acquisition, infrastructure development, and regenerative practices while ensuring projects never oversell beyond their physical capacity.
How Bonding Curve Financing Works
Continuous Token Sales
Projects can sell tokens continuously rather than in discrete rounds:
- Tokens are always available for purchase
- Prices increase automatically as more tokens are sold
- No need to wait for funding rounds
- Capital flows in as demand grows
Automatic Price Discovery
Bonding curves automatically set prices based on:
- Number of tokens already sold
- Total supply available
- Mathematical curve formula
- Market demand
Capacity Limits
Bonding curves prevent overselling by:
- Setting maximum token supply based on physical capacity
- Automatically stopping sales when capacity is reached
- Ensuring tokens represent real access rights
- Preventing over-subscription
Financing Regenerative Projects
Bonding curve financing provides capital for:
- Land Acquisition: Purchasing land to place in perpetual commons
- Infrastructure: Building water systems, housing, and other infrastructure
- Regenerative Practices: Implementing regenerative practices like water retention landscapes and agroforestry
- Debt Retirement: Using proceeds to retire debt through exit to commons
Bonding Curve vs. Traditional Financing
| Aspect | Traditional Financing | Bonding Curve Financing |
|---|---|---|
| Timing | Discrete rounds | Continuous sales |
| Price | Fixed per round | Automatic adjustment |
| Access | Limited to rounds | Always available |
| Overselling | Possible | Prevented by curve |
Benefits of Bonding Curve Financing
- Continuous Capital: Projects can raise capital continuously as demand grows
- Fair Pricing: Prices automatically adjust based on supply and demand
- Capacity Protection: Prevents overselling beyond physical capacity
- Accessibility: Anyone can participate at any time
- Transparency: All sales and prices are on-chain and transparent
Bonding Curve and Regenerative Commons
In regenerative commons, bonding curve financing:
- Provides capital for land acquisition and infrastructure
- Enables tokenized access rights to be sold continuously
- Creates alignment between financial participation and regenerative outcomes
- Supports debt retirement through token sales
- Ensures projects never oversell beyond capacity
Commons Market Maker
The commons market maker is a smart contract that implements the bonding curve, automatically:
- Setting token prices based on supply
- Processing purchases and sales
- Preventing overselling beyond capacity
- Managing token supply
Learn More
Read Rethinking Wealth for detailed analysis of bonding curve financing.
See also: Bonding Curve, Tokenized Access Rights, Regenerative Commons Economics
Related Terms
- Bonding Curve - Price discovery mechanism
- Tokenized Access Rights - What tokens represent
- Regenerative Commons Economics - Economic framework
- Exit to Commons Debt Retirement - Using proceeds to retire debt