LDCRC 2020-21 Roadmap: Tokenization and Bonding Curve Experiments

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Introduction

For our Ledgerback Digital Commons Research Cooperative (LDCRC) Roadmap for 2020 - 21, we have decided to discuss our specific end-goals in individual posts, centered on the development of certain projects and research objectives, throughout April and May.

In this post, we will discuss our Token Bonding Curve (TBC) experiment, other areas we are considering tokenizing, and our goals for these projects.

About

Our TBC Experiment (hereinafter "Fund-Community-Research (FCR)") is an investigation and exploration into developing TBCs, with a particular implementation of a double sigmoid (aka sigmoidal) curve (“Double S-curve”) (aka double logistic curve) for fundraising for researcher-hosted projects, primarily in the area of research and development and education projects.

The experiment will be primarily conducted in the Cryptoeconomics research group.

What is a Token Bonding Curve?

A token bonding curve (aka automated market-maker) is a market where users can mint or burn tokens based on the collateralization of the tokens by another asset (e.g., DAI or Ether), and acts as a means of price discovery.

Experiment

Type of Curve: The curve chosen for our R&D fundraising experiment is a Double S-curve.

Generally, sigmoid curves (in this case, single S- curve) are the predominant shape of R&D development lifecycle, and are generally appropriate for the lifecycle of intellectual property-related production.

We chose a Double S-curve because we wanted to explore TBC’s based on a S-curve design, and especially how a Double S-curve would affect the growth of a token economic system. Additionally, a double S-curve may give us greater variability in splitting the curve into 2 stages: 1) the R&D stage and 2) Monetization/Adoption stage.

Purpose: To develop a fundraising/mutual aid model for R&D and education projects.

Example: Researcher starts a project. If people think the project will lead to a positive outcome, they will deposit collateral in exchange for minting tokens via the bonding curve. The minters can also participate in the research process as participants.

Research: Developing and testing token economic systems, especially in regards to a regenerative economic system

General Operations:

  1. Mint tokens by depositing collateral

  2. Add further collateral to the bonding curve

  3. Tokens are used (sold, exchanged, programmed, etc.)

  4. Withdraw collateral by burning tokens

Other Areas of Consideration

Some goods and services, and affiliations we are considering whether to experiment tokenizing with are:

  • Membership Certificates,

  • Membership Affiliation Badges,

  • LDCRC Services,

  • Papers and eBooks, and

  • Surveys and Polling.

Expected Timeline

2020

End of Q4: Draft versions of the documentation (cryptoeconomic model, game theory, etc.) for the FCR experiment

End of Q4: Determination of which other areas to experiment tokenizing

2021

End of Q2: Draft versions of the documentation for the other areas to tokenize

End of Q3: FCR drafts should be ready for public comment and co-design

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