Glossary
Bonding Curve
A mathematical formula embedded in a smart contract that sets a token's price as a continuous function of its circulating supply, so price rises as tokens are minted.
A bonding curve is a pricing function written into a smart contract that ties a token's price directly to its supply. When a buyer mints new tokens the contract moves up the curve and the price increases; when a seller burns tokens the contract moves back down and the price falls. Because the formula is deterministic, anyone can trade against the contract instantly without a counterparty or an order book.
Bonding curves underpin continuous token offerings, automated market makers, and launchpads such as pump.fun, where each memecoin starts on a curve before graduating to a normal liquidity pool. Designers choose the shape — linear, exponential, or logarithmic — to control how quickly price climbs and how early buyers are rewarded relative to later ones.