What is Bonding Curve?

Bonding curve smart contracts represent a method for nurturing balanced supply and demand. A bonding curve is a mathematical concept used to explain the relationship between the price and supply of an asset. Bonding-curve smart contracts allow selling to investors by calculating the token/coin price in an asset such as bitcoin (BTC) and issuing the asset after payment, while also allowing investors to retain the ability to buy the asset back. Through a bonding curve contract, when a user purchases an asset that is limited in quantity, each subsequent buyer must pay slightly more for the asset.