Bonding Curve

A mathematical formula that automatically prices tokens based on supply — as more tokens are minted, price increases per the curve. Smart contracts handle minting (sell at current price) and burning (buy back at current price), always providing exit liquidity. Common shapes: linear, quadratic, exponential, sigmoid. Pump.fun popularised bonding curves for Solana memecoin launches; coins graduate to Raydium AMM after hitting market cap threshold.