The @aavegotchi DAICO has been live for a week now https://abs.twimg.com/emoji/v2/... draggable="false" alt="🚀" title="Rakete" aria-label="Emoji: Rakete">

$GHST is held by over 2400 addr, with ~6M DAI in reserves https://abs.twimg.com/emoji/v2/... draggable="false" alt="👍" title="Thumbs up" aria-label="Emoji: Thumbs up">

but everyone& #39;s asking us... why an uncapped, continuous bonding curve? inflation bad, right?

Here’s a https://abs.twimg.com/emoji/v2/... draggable="false" alt="🧵" title="Thread" aria-label="Emoji: Thread">on why you should stop worrying and https://abs.twimg.com/emoji/v2/... draggable="false" alt="❤️" title="Rotes Herz" aria-label="Emoji: Rotes Herz"> the curve

1/ What& #39;s a bonding curve, and why should it make you cozy?

Bonding curves define a relation between price and supply:

Higher supply --> higher price

BCs typically have uncapped supply bc capping supply also caps price.

Imagine buying the top if you know it& #39;s the top...

2/ So how& #39;s it work?

Bonding curves are powered by automated market makers (AMM).

They& #39;re always on, and always liquid.

if you& #39;ve ever bought from Uniswap, Curve, or NXM, you& #39;ve used an AMM.

Tbh, w/o AMMs there would be no DeFi.

So h/t to the galaxy brains at @Bancor...

/3 cool story bro, but why does Aavegotchi need a continuous bonding curve? why not cap $GHST at 25M and call it a day?

$GHST is your entry ticket into Aavegotchi. You& #39;ll need it to:

1. Buy portals, wearables, consumables
2. Stake to farm $REALM
3. Govern the DAO
...and more

4/ Capping the bonding curve would be like Sony capping the number of Playstations they sell

Sure it would make & #39;em rarer, but fewer people would play their games.

An uncapped supply allows us to onboard an infinite number of players

and remember, price follows supply...

5/ The supply cap meme is hot right now, but we shouldn& #39;t lose sight of Aavegotchi& #39;s ultimate vision:

to gamify DeFi and NFTs and onboard the masses into blockchain gaming, just like Tamagotchi did for digital pets

it& #39;s gonna take a lotta $GHST to do that...

6/ In the end, we& #39;re all bound by the laws of supply and demand

If you buy $GHST, you increase the supply.
If you sell $GHST, you decrease the supply.

If more ppl buy than sell, supply and price go up.

Simple math ftw

So stop worrying,
and https://abs.twimg.com/emoji/v2/... draggable="false" alt="❤️" title="Rotes Herz" aria-label="Emoji: Rotes Herz"> the curve