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Nicklas
@mr-silverback
Some important Fan Token Dynamics you may not know about. I want to talk about the bonding curve and what downside you have in fan tokens. When an auction ends a large portion of the auction spent moxie is put into the bonding curve. This moxie is the immediate reserve for withdrawals (ie sells). So even at day 1 you wouldnt get a total loss as the last man out - but you would see a severe discount. What is ingenious is that as time passes this floor reserve for the last man out ratchets higher. The moxie used for the buy and burn buys the fan tokens and burns the token so supply isnt affected (only price). This moxie stacks on the reserve within the bonding curve. As more and more moxie is stacked into the reserve the higher the floor becomes on the fan token upon exit. This is why I was wrong to be so worried about a negative out regarding channels. Even in a doom scenario of them ceasing to exist - it isnt a lose everything situation.
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arob.base.eth🍖🎩
@arob1000
Interesting analysis. So if a caster decides to quit Farcaster their Fan Token will always have some value due to the $MOXIE locked into the bonding curve. That’s great, especially considering how we all just locked our FT’s for 3 months 😂
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Nicklas
@mr-silverback
its good to know for those fearing the lockup
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arob.base.eth🍖🎩
@arob1000
Yeah exactly. Might quell some anxiety people are having for locking their tokens. Thanks for the deep dive, love to see it!
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