###### tags: `CommonsConfig`

# The Augmented Bonding Curve

The Augmented Bonding Curve **(ABC)** is the main economic engine by which we will provide a constant flow of funding to the Commons Initiatives. In this module you'll be tasked to design an ABC which will be the primary market where TEC tokens are bought and sold.

The magic of the Augmented Bonding Curve is that whenever a buy or sell order takes place on its market a percentage is sent directly to the funding pool. The percentage taken immediately in wxDAI from buy orders to the curve is the **Entry Tribute**. Conversely, the percentage taken from sell orders is the **Exit Tribute**. This means that for every action on the curve the Commons receives funding to *advance Token Engineering.*

The ABC funds two pools:

**The Common Pool** holds funds that will be used for realizing the initiatives of the TEC.

**The Reserve** backs the value of TEC tokens as they are bought and sold on the ABC. When tokens are bought on the curve the price of TEC goes up, when it is sold the price goes down.

During the Commons Upgrade a percentage of the total funds raised from the Hatch is sent to the Common Pool to kick-start the Commons' projects. This percentage is the **Commons Tribute**.

### "What percentage of Hatch funds should go immediately to funding TEC projects?"

### "What percentage of every BUY order on the ABC should go to funding the TEC?"
| Entry Tribute | ________________ |
| ----- | --------- |
### "What percentage of every SELL order on the ABC should go to funding the TEC?"
| Exit Tribute | ________________ |
| ----- | --------- |

## Testing out the Augmented Bonding Curve

Try out your ABC Design using this tool! Choose a reserve balance and how much TEC you want to buy or sell, then experience your Augmented Bonding Curve. Add transactions to the curve, taking note of any potential profits or losses from orders made and how the price of TEC fluctuates in response. Using the Table generated below you can see how much funding for the TEC is generated using the Entry & Exit Tributes you selected.

> We'll need to have an error message somewhere if the user tries to sell more TEC than the token supply

> User chooses a reserve balance from one of the 5-6 pre-set options or can set their own custom amount


> Add in input for Opening Price and display for Reserve Ratio next to opening price input and graph for the Augmented Bonding Curve

> - The first 3 steps are decided by us as the default 'story' users then can add 3 more steps more using input buy/sell amount of their choice
> - have a 'larger buy story' graph and a 'larger sell story' graph. users can toggle which graph scenario to view and add point(s) to. The summary table will also update according to which story the user is interacting with

> Then at the end we put the summary table that will update as the user adds or removes 'story points' on the curve.

<table>
<tr>
<td>Step #
</td>
<td>Current Price
<p>
<em>wxDAI/TEC</em>
</td>
<td>Amount In
</td>
<td>Tribute Collected
(wxDAI)
</td>
<td>Amount Out
</td>
<td>New Price
<p>
<em>wxDAI/TEC</em>
</td>
<td>Price Slippage
</td>
</tr>
<tr>
<td><strong>Step 1</strong>
</td>
<td>2.00
</td>
<td>200 wxDAI
</td>
<td>10.00
</td>
<td>80 TEC
</td>
<td>2.83
</td>
<td>6.2%
</td>
</tr>
<tr>
<td><strong>Step 2</strong>
</td>
<td>2.83
</td>
<td>2000 wxDAI
</td>
<td>100
</td>
<td>704 TEC
</td>
<td>5.776
</td>
<td>104%
</td>
</tr>
<tr>
<td><strong>Step 3</strong>
</td>
<td>5.776
</td>
<td>60 TEC
</td>
<td>67.43
</td>
<td>263.48 wxDAI
</td>
<td>5.42
</td>
<td>6.2%
</td>
</tr>
</table>

> In the summary page, at the end of the commons config, we'll have a standardized set of buys and sells that will be more helpful for comparing one commons design to another,