> For the complete documentation index, see [llms.txt](https://kaspakat.gitbook.io/moonbound.gg/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://kaspakat.gitbook.io/moonbound.gg/how-it-works.md).

# 🚀 How It Works

Moonbound launches are fully automated, transparent, and enforced entirely by smart contracts. There are no forms, no teams to approve you, and no central party to trust — just clean, deterministic logic.

#### Step-by-Step Overview

1. **Token Deployment**
   * Anyone can launch a new token through the Moonbound UI by paying a **KAS Launch Fee**.
   * You define the token name, ticker, total supply, and off chain metadata like image, website, and socials.
   * Token launches are immediately created by default, but can be scheduled for a future time by the creator in the Moonbound UI.
   * **75%** of the total token supply is allocated to the **bonding curve**.
   * **25%** is **reserved** to create a liquidity pool at graduation.
2. **Bonding Curve Sale Begins**
   * The bonding curve starts at a low price and increases **quadratically** as tokens are bought.
   * Formula: `price ∝ (s / S)^2`, where `s` is tokens sold and `S` is the bonding curve cap.
   * Buyers purchase tokens using **wrapped KAS (wKAS)** and receive tokens instantly.
   * All trades are onchain and permissionless.
3. **Trading & Revenue Collection**
   * Each trade on the curve includes a **1% protocol fee** that goes to the **Moonbound Treasury**.
   * Sellers can exit by selling tokens back to the curve, up until graduation.
4. **Graduation Conditions Met**
   * The token **automatically graduates** when:
     * All bonding curve tokens are sold (`s = S`), and
     * No single wallet holds more than **10%** of the total token supply
   * Upon graduation:
     * The **Kaspa collected** from the bonding curve is paired with the **reserved tokens** to form a **50/50 liquidity pool** on Zealous DEX.
     * The resulting **LP tokens are permanently burned**, locking liquidity forever.
     * Bonding curve trading is disabled, and the token becomes fully tradable on the DEX.
5. **No Unsold Tokens**
   * Moonbound’s design **guarantees** that 100% of bonding curve tokens are sold before graduation.
   * There is no possibility of leftover or unsold tokens on the curve.

#### Visual Summary

<figure><img src="/files/73mqGYBRnroCLFOmCvxX" alt=""><figcaption></figcaption></figure>

\
Moonbound is designed for **pure, trustless launches** — no admins, no games, no compromises.