# Bonding Curve Mechanism

The **Bonding Curve Mechanism** ensures **AI Agent Token** prices adjust dynamically based on market demand, incentivizing early adopters.

* **Token prices increase with higher purchases**, rewarding early community members with lower prices.
* A **portion of transaction funds** automatically goes into the **liquidity pool**, ensuring price stability.
* **Sell orders follow the Bonding Curve** to prevent sharp price drops from large sell-offs.


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