# Bonding Curve Launch

LMAO.fun utilizes a Bonding Curve Launch mechanism that simplifies token launches and allows users to create coins without the need for an initial liquidity pool. A bonding curve is a mathematical pricing model that adjusts the price of a token based on its supply and demand.

With this feature, tokens start at a lower price, and as more are purchased, the price increases according to the bonding curve. This enables token creators to raise funds seamlessly without requiring an initial liquidity pool. As demand grows, the bonding curve ensures a natural price progression, mitigating extreme volatility early on and providing fair access for early adopters.

Once the token reaches a market cap of 420 SOL, it will be launched on the DEX Raydium under this structure:

**Rates:** SOL/USD = 150

| Parameters                   | SOL   | Approx. $ |
| ---------------------------- | ----- | --------- |
| Bonding Curve Sol Raised     | 147.4 | $ 22,110  |
| Sol Added to Raydium         | 125.9 | $ 18,885  |
| Marketcap at Launch          | 420   | $ 63,000  |
| Top Holders Reward           | 6.189 | $ 928.35  |
| Creator Reward               | 1.5   | $ 225     |
| Raydium Costs                | 0.79  | $ 118.5   |
| LMAO Development             | 6.5   | $975      |
| LMAO Token Liquidity/Buyback | 6.5   | $975      |

The Sol added to Raydium will be paired with 300,000,000 tokens, bringing the total launch liquidity to **$37,770** and a starting marketcap of **$63,000** (at Solana price of $150).

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All liquidity will be locked and burned at Raydium launch to prevent rugs. 
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