# 📊 Tokenomics

Moonbound’s token model is engineered for fairness, sustainability, and seamless DEX launch. Every parameter is chosen to align incentives across creators, buyers, and the protocol — all enforced by immutable smart contracts.

#### Total Supply Allocation

When a creator launches a token on Moonbound, the supply is split into two parts:

| Purpose             | Allocation | Description                                         |
| ------------------- | ---------- | --------------------------------------------------- |
| **Bonding Curve**   | 75%        | Sold to users via a quadratic price curve           |
| **Reserved for LP** | 25%        | Held to create a 50/50 liquidity pool at graduation |

There are **no presales, dev wallets, or team allocations** — every token starts from zero and earns its demand onchain.

***

#### Bonding Curve Mechanics

Moonbound uses a **quadratic bonding curve** to price tokens dynamically:

```
Price = Base_Price × (s / S)²
```

Where:

* `s` = number of tokens sold so far
* `S` = total tokens available on the bonding curve (75% of max supply)
* `Base_Price` is calculated to ensure graduation occurs at a fixed market cap of **$50,000 USD** (denominated in KAS)

**Key Properties:**

* Early buyers get lower prices
* Later buyers pay more as supply sells out
* Pricing is **predictable**, **onchain**, and **fair for all**

***

#### Graduation & LP Creation

Once all bonding curve tokens are sold (`s = S`) and **no wallet owns more than 10%** of the total supply:

* All KAS collected from the bonding curve is paired with the reserved 25% of tokens.
* A **50/50 liquidity pool** is created on Zealous Swap DEX.
* The resulting **LP tokens are permanently burned**, locking liquidity forever.
* Curve trading is disabled, and the token begins trading on the open market.

***

#### Protocol Revenue Model

Moonbound generates sustainable protocol revenue to support future development and reward ecosystem participants:

| Revenue Source            | Amount      | Destination        |
| ------------------------- | ----------- | ------------------ |
| Launch Fee                | KAS         | Moonbound Treasury |
| Trade Fee (Bonding Curve) | 1% per swap | Moonbound Treasury |
| Graduation Fee            | KAS         | Moonbound Treasury |

***

#### Treasury Distribution

Revenue accumulated by the protocol is distributed **weekly**:

| Recipient                                                                | Share  |
| ------------------------------------------------------------------------ | ------ |
| **K.A.T. Foundation**                                                    | 70%    |
| **Launched Projects** (proportional by bonding curve trading volume)     | 10%    |
| **Nacho Kats NFT Stakers** (proportional by stakedPower on Zealous Swap) | 10%    |
| **Nacho Infinity Pool (**on Zealous Swap)                           | 10%    |
| **Reserved for Gas**                                                     | 10 KAS |

These funds support continuous value delivery to builders, holders, and stakers across the Kaspa ecosystem.