Bonding Curves
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A bonding curve is a pricing mechanism that automatically adjusts the price of a token as it is being bought or sold. When tokens are bought, the price moves up the curve; when tokens are sold, the price moves down. This simple yet powerful mechanism allows prices to dynamically reflect market demand.
Click below to jump to a specific section of this Guide • Token Mill's Bonding Curve AMM • The Five Default Bonding Curves • Custom Bonding Curves [Advanced Customization]
Token Mill is a Bonding Curve Automated Market Maker (BCAMM), meaning no migrations and no external liquidity providers/market makers needed for trading tokens on Token Mill.
The price of tokens on Token Mill are governed by two distinct bonding curves, an Ask curve (for buying tokens) and a Bid curve (for selling tokens). The Ask curve will always be priced slightly higher than the Bid curve. The difference in this price is the trading fee paid by token buyers. Sellers pay no fees.
Token Mill offers default bonding curves for creators to choose from. The price action of each curve type offers different growth styles. Consider how fast you want prices to rise and what type of buyer you want to attract to help you pick the best option for your token.
Power Curve
Curve Shape: Starts slow and has a gradual increase in price, with the price rising sharply in the later stages.
Ideal For: Communities targeting a more gradual and accessible accumulation phase before true lift-off. This curve rewards early participation, buy applies pressure on later buyers with price ramping up quickly after early stages.
The Power Curve has an extra variable, '⍺", which governs the curve during customization. By default, this is set to 3, but can be adjusted from -15 (closer in shape to a logarithmic curve) to -15 (loser in shape to an exponential curve). Play around with this variable to find your perfect curve shape.
Quadratic Curve
Curve Shape: Begins with a moderate rise in price that accelerates steadily over time.
Ideal For: Communities looking for stable and predictable growth with room for value appreciation. This balances accessibility for early buyers with growth potential.
The Quadratic Curve has an extra variable, 'C", which governs the curve during customization. By default, this is set to 2, but can be adjusted from 0 (steeper than default) to 10 (creates a Linear Curve). Play around with this variable to find your perfect curve shape.
Exponential Curve
Curve Shape: Starts slow, but prices spike dramatically after initial buying activity.
Ideal For: Communities aiming for fast early accumulation at low prices followed by strong price action to drive hype. Later buyers will be buying under rapid price increases.
Logarithmic Curve
Curve Shape: Starts with a steep rise that gradually slows down as more tokens are bought.
Ideal For: Communities that want to create immediate price action momentum to garner hype, followed by more stable price action designed for sustained, longer-term growth. Overall less punishing for late buyers versus other curves.
Linear Curve
Curve Shape: Prices rise at a constant rate with each purchase, creating predictable and even growth throughout the entire curve. There are no sharp rises or slow starts—just a simple, steady increase.
Ideal For: Communities that want a fair and easy-to-understand price structure.
The easiest method for creating a Linear Curve is to make a custom Quadratic curve. Simply activate "Mill-brain" mode and then adjust variable 'C" from 2 to 10.
Token Mill allows you to go beyond the default curves to create entirely unique bonding curves by customizing the buy and sell prices at each interval. Fine-tune your token's price action at each stage of buying and selling along your curve.
How to Customize a Curve
Token Mill splits the bonding curve into equal intervals from the minimum to the maximum price. Each interval has a set price which is used to govern the bonding curve. By manually configuring these prices, you can create an entirely unique curve.
Increase the difference in price between two intervals to steepen that section of the curve.
Decrease the difference in price between two intervals to flatten the curve.
With Token Mill, you have full flexibility in building the curve you want.
Tailor the curve to emphasize certain stages of growth. For example, you could create a steep price rise after an initial low-cost entry to encourage early buyers, or flatten the curve later to make it more affordable for long-term holders.
