Bonding Curve Safeguards Mechanisms
Transaction deposit sizes are capped to mitigate potentially high slippage associated with the curve. Currently 50 ETH per transaction.
To prevent significant slippage and protect the bonding curve from potential manipulation by malicious entities within the network, a daily withdrawal limit has been established to maintain the curve's stability. Currently the withdrawal limit is 1% of the total reserve in the curve.
The mechanism of the bonding curve automatically halts withdrawals if the Fshare% (bonding curve reserve / network FShare) falls below 1, only allowing them once the ratio exceeds 1 again. This measure guarantees that the active memberships sold to users remain with the proper reserve.
The tribute fee on withdrawals is an important consideration for contributors. It acts as a mechanism to stabilize the network by discouraging frequent withdrawals and rewarding long-term holders, while also serving as a penalty for those looking to exit the system quickly. This fee encourages users to carefully consider the timing of their withdrawals
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