# Bonding Curve - Solana ### Introduction This is an implementation of a bonding curve mechanism for buying and selling Moonshot tokens based on virtual collateral and token reserves, also known as a Constant Product curve. The curve has an quadratic shape so that the price rises slowly at the start and fast towards the end. \ \ Once \~80% of the 1B token supply is sold on the curve, the market cap reaches \~431 SOL and all remaining tokens & collateral migrate to either Meteora or Raydium (as set by the creator at launch). Approximately \~88 SOL of collateral is collected on the curve. {% hint style="info" %} The curve described here applies to all coins launched after 12 August, '24. Coins launched prior use a linear curve that collects \~250 SOL in collateral before migration. {% endhint %} ### Definitions #### Curve vTOKEN \* vSOL = k Where, 1. vTOKEN = virtual reserve of the token 2. vSOL = virtual reserve of the collateral (SOL) 3. k = constant that determines the shape of the curve #### Setting initial values We set the value of the coefficient k based on the initial price of the token k = vTOKEN \* vSOL = iVTOKEN \* iVSOL - (1) Where, iVTOKEN is initial amount of vTOKEN = 1,073,000,000 Initial price is set at 27.95 lamports or 0.00000002795 SOL So initial price = iVSOL/iVTOKEN = 27.95 lamports Initial virtual and collateral reserves are set as follows : * iVTOKEN = 1,073,000,000 * iVSOL = 30 #### Values * Total supply of tokens (T) = 1,000,000,000 * Minimum price is set to 27.95 lamports or 27.95e^-9 SOL * Mcap = price \* 1,000,000,000 * Allocation at Migration (A) = \~80% of total supply * The minimal token amount is 799820983207404442 (tokens have 9 decimals). That's the exact point trading stops and the migration begins. Its close to 80% of token allocation but not exact since the smart contract derives this number from the the MarketCapThreshold * MarketCapThreshold is set to 345 SOL (A \* price). The equates to a fully diluted market cap of \~431 SOL * If a buyer places a larger trade right before the \~80% threshold, a max allocation of 82% can be sold on the curve * Curve progress % = allocation / min token amount (799820983207404442) * Fee to be deducted at the time of migration (F) = 6 SOL for Raydium or 3 SOL for Meteora * **Raydium:** 1 SOL is paid to Raydium and 3 SOL is paid to openbook * **Meteora**: 1 SOL for creating various token accounts for [Launch. Lock. Earn](/faq.md#whats-launch-lock-and-earn) * 2 SOL migration fees paid to Moonshot #### Calculation on tokens to Migrate (M) : For calculating M, we will calculate, at the time of migration (when supply reaches the allocation A), * SOL collected as collateral * Reduce the fee to be charged from the collateral SOL * Calculate the price at the time of migration (allocation reached) * Determine the no of tokens (to be migrated) based on the collateral collected and price at allocation M = (collateral collected - migration fees) / price of token * Collateral Collected= current\_virtual\_collateral\_reserves - initial\_collateral\_reserves * Migration fees = Fee charged for creating a pool on Raydium/Meteora + Moonshot migration Fee = 6SOL * Price of token = current\_virtual\_collateral\_reserve / current\_virtual\_token\_reserve #### Calculating tokens to Burn (B) Tokens to Burn (B) = T - A - M \= Total Supply - allocation(tokens sold at migration) - tokens to migrate (M) So the total tokens in circulation post migration would be = A + M \ Example ------- Token Address : 6ovpeZNwNbXJzUaXMs8zozh9JvnJPq5teUJTQtLhRDwg Total Supply (T) = 1,000,000,000 [Allocation at Migration](https://solscan.io/account/4kG9mqhHYjKDMwWM1xq1EZZtNUrn9wxdvhbQGs651u9a#splTransfers) : 801,085,146 [Collateral Collected at Migration](https://solscan.io/account/4kG9mqhHYjKDMwWM1xq1EZZtNUrn9wxdvhbQGs651u9a#splTransfers) : 88.386383546 [Collateral as SOL shifted to Raydium](https://solscan.io/tx/2AfEMzvPScRP1BdAkfUsVqM517tx9kdnZHVaNmS9gFHhJMTwQZzgxyc6cAG4K8GGvtbXPm9czxVoUPeUyNL2MKhZ) = collateral collected - Fees \= 88.386383546 - 6 \= 82.386383546 Price at migration = (Difference in virtual token reserves) / (Difference in virtual collateral reserves) \= (1,073,000,000 -801085145) / (88.386383546 + 30) \= 4.35380346e-7 [Tokens to Migrate (M)](https://solscan.io/tx/2AfEMzvPScRP1BdAkfUsVqM517tx9kdnZHVaNmS9gFHhJMTwQZzgxyc6cAG4K8GGvtbXPm9czxVoUPeUyNL2MKhZ) = (collateral collected - Fees) / Price \= 82.386383546 / 4.35380346e-7 \= 189,228,531 [Tokens to Burn](https://solscan.io/tx/xqJmLhHLENjS5zUVfH4FFD5v1FiZPRWhkcmRHGT4XAipLpipjdXaGaKK7yFw3yDX3HbeLwGFuYuaEQeKxARVVSn)(B) = T - A - M \= 1,000,000,000 - 801,085,146 - 189,228,531 \= 9,686,323 [Raydium LP tokens burnt](https://solscan.io/token/3BXCVLEKjcPz1UKKVMELSj6yTEKTXQt1zU1WiQyL7EBV) \ Calculating prices for buy & sell --------------------------------- Please us our [Bot SDK](/developers/bot-sdk-solana.md) or contact our team for support --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.moonshot.cc/developers/bonding-curve-solana.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.