TApp Token Supply & Demand

Bonding Curve Tokens

One possible avenue for an enduser to increase the size of assets in their wallet is to become an investor of TApp or CML tokens. These tokens are issued on a bonding curve and increase in value the more people invest in them. Stated differently, price is correlated with supply.
In addition to buys and sells of bonding curve tokens, consume actions will also influence the price of both TApp and CML tokens.
  1. 1.
    When an enduser pays to use a TApp, that payment goes as a consume action into the TApp's bonding curve token. Each holder receives a token dividend based on their holdings and the price increases as supply has increased.
  2. 2.
    When an enduser pays to use a CML host, that payment goes as a consume action into the CML's bonding curve token. Each holder receives a token dividend based on their holdings and the price increases as supply has increased.
These consume actions are always net of the bonding curve theta for both TApp and CML tokens.
The bonding curve will be in constant changing as long as there are buy/sell events on the token as well as consume actions originating from the entity that the token represents. For example, every buy and consume event will make the price (and supply) increase by a bit.

TApp Token Strategy

Using your TEA to invest in the bonding curve of TApps is one way to participate in the growth of the TEA ecosystem as exemplified by its apps. If you invest in a popular TApp or often-used CML node, it'll make much more than just holding onto the TEA. As more people buy the TApp or CML token, then the the market cap of your bonding curve token will increase. This represents a gain in value for all token holders. Conversely, a net sell of TApp or CML bonding curve tokens will reduce the overall market cap as well as the actual price of the tokens.

TApp Tokens in Wallet Expand on Consume Actions

Why do my tokens keep increasing in value even when no one has bought anymore?
This is the magic of the bonding curve. The TEA project uses what's called an augmented bonding curve. It supports both "consume" and "expense" actions. Your token supply will increase when there are consume actions for the TApp and decrease when there are expense actions coming from the TApp.

Consume Action

When a consumer spends (pays for usage) of a TApp, the TEA they spend is paid into this TApp's operational account. Since the consumer has used the service in exchange for TEA, their transaction is completed.
The TEA they spend on the TApp is used to buy its TApp token. These newly minted tokens will then be distributed to all token holders, and that is how your token balance increases. Because the person who paid to use the TApp has already received the service already, they won't receive any newly minted tokens for their transaction.
Investors who own a TApp's token are stakeholders in that app. They're like stock holders own some percentage of the project and receive a dividend every time the TApp is used.
Last modified 1mo ago