βFrequently Asked Questions
What is the Mint Club protocol?
Mint Club enables the creation of customizable tokens or NFTs with bonding curves, allowing for any ERC20 token to be chosen as the base asset. This capability extends across a range of EVM-compatible L1 and L2 networks, including Ethereum, Base, Optimism, Arbitrum, Polygon, Avalanche, and BNB Chain, thus eliminating the need for manual liquidity pool setup.
What is a Bonding Curve?
A Bonding Curve is a mathematical curve that determines the price of a token in a Base Asset at different supply levels. When tokens are bought, they are minted by the contract, and the corresponding Base Asset is added to the pool. Conversely, selling tokens results in their burning, and the seller receives a predetermined amount of the Base Asset. This automated process of the bonding curve eliminates the necessity for token creators to manually set up a liquidity pool, like in Uniswap.
What are the benefits of using a Bonding Curve?
Using a Bonding Curve removes the necessity for a manual liquidity pool for tokens. The minting/burning mechanism inherent in the bonding curve contract ensures tokens or NFTs are tradable immediately upon creation. Moreover, you have the ability to tailor your tokenomics by designing the price-supply curve. This facilitates independent operation of your token/NFT, free from reliance on exchanges, centralized control, or order books.
Are there any disadvantages to launching ERC-20 or ERC-1155 tokens on Mint.Club?
No, there are no inherent disadvantages. Tokens launched on Mint.club are compliant with standard ERC-20 and ERC-1155 protocols. As a result, tokens created on Mint.club can be listed on centralized exchanges and have liquidity pools on DEXs like Uniswap.
Can I edit the curve after launching the token?
No, you cannot. The Bonding Curve is encoded into the smart contract as on-chain data. Once the token is launched, the curve becomes immutable and cannot be changed by anyone.
What are the benefits of using the Mint Club platform?
Mint Club offers two primary benefits: 1) Comprehensive flexibility in designing bonding curves, and 2) straightforward monetization through creator royalties.
Comprehensive Flexibility: With Mint Club, create bonding curve tokens or NFTs with total design control, no coding needed. Choose from curve types like linear, exponential, or flat line, and adjust price variation intervals for your token's journey. Additionally, set key token specifications like initial minting price, free minting allocation, final minting price, and supply. Launch your asset on various Layer 1 and 2 networks using any ERC20 token as the base asset.
Straightforward Monetization: Choose royalty rates ranging from 0% to 50% for minting or burning your token or NFT. These royalties automatically accumulate in the owner's address, allowing for straightforward monetization of your project by setting the royalty option during your bonding curve asset's creation.
Can you provide an example for better understanding?
For instance, consider the creation of a Sonny Fan Club (SFC) NFT pass (ERC1155) on the Base chain using $DAI as the base asset. The SFC NFTs would have a $DAI-based bonding curve pool that automatically adjusts based on token buying/selling activities (similar to the V1 protocol). When someone buys SFC, $DAI gets locked in the bonding curve, and SFC is minted to the buyer. Conversely, when SFC is sold, $DAI is returned to the seller, and SFC is burned. Users can also customize the bonding curve design, including the initial/final minting price point, free minting allocation, etc.
How does trading with bonding curve tokens/NFTs function without manually creating a liquidity pool?
When you create a token or NFT via the Mint Club platform, it is associated with a built-in price bonding curve. This curve sets a pre-determined price for each token supply level, which you can fully customize on the creation page.
When a bonding curve token is bought, the price bonding curve determines the amount of the base token to be paid, facilitating a swap. The paid base tokens are then stored in the bonding curve pool, and an equivalent amount of the bonding curve tokens is minted to the buyer.
Conversely, when a bonding curve token is sold, the curve calculates the amount of base tokens to be returned. These base tokens are given back to the seller, and the corresponding amount of bonding curve tokens is burned.
This process ensures that the total supply of the bonding curve tokens (that you created) fluctuates in response to buying and selling activities.
What are the differences between Mint Club V1 and V2?
Mint Club Version 1: Enables the creation of BEP20 tokens on the BNB Chain using $MINT as the base asset. When people buy your token, $MINT tokens are locked in the bonding curve pool as collateral.
Mint Club Version 2: Allows for the creation of ERC20 (including BEP20 variants on the BNB Chain) and ERC1155 (NFT) assets on various platforms like Ethereum, Optimism, Arbitrum, Base, BNB Chain, etc., using ANY ERC20 tokens as a base asset, such as $ETH, $APE, $MINT, $OP, and more. Version 2 also introduces customizable bonding curve designs with adjustable step-based parameters.
What type of asset can I create on Mint Club?
You can create assets in ERC20 (token) or ERC1155 (NFT) formats.
Which chains does Mint Club support?
Mint Club currently supports (as of May 30, 2024):
Ethereum
Base
Arbitrum
Avalanche
Optimism
Blast
BNB Chain
Polygon
Klaytn
Degen Chain
Zora Chain
Cyber Connect
Ham Chain
What is a Base Asset?
A Base Asset is any ERC20 token you choose as the foundation for your token or NFT's bonding curve pool. This setup allows your bonding curve token or NFT to mint or burn in tandem with the selected base asset. For instance, if you select APE as the base asset, buyers will use APE tokens to mint your bonding curve tokens. As a result, the value of the bonding curve asset is linked to the base assetβs price.
How can I customize the bonding curve?
When creating your bonding curve token or NFT on Mint Club, you'll use the bonding curve wizard, which allows for complete customization based on your needs. You can choose the curve type from options like linear, exponential, logarithmic, or flat line. Adjusting the price variation intervals lets you set the number of steps for identical price level ranges throughout your tokenβs journey. Additionally, you can define token specifications, including the initial minting price, creator's free minting allocation, final minting price, and maximum minting supply.
Can I monetize as a creator of the bonding curve token/NFT?
Yes, you can monetize by setting creator royalties. As a tokenized business owner, you have the option to set royalties ranging from 0% to 50% whenever your token or NFT is minted or burned. These royalties automatically accumulate in the owner's address.
Can I do airdrop / private sales with the token I created?
Yes, you can. During the bonding curve design, allocate a specific "free minting" amount, which will automatically transfer to you upon asset creation. This can be utilized for private sales or airdrops to your community. Additionally, our lock-up tool allows you to implement contract-level token lock-ups for team allocations.
Are there fees for minting or burning bonding curve assets (a.k.a trading fees)?
If the token creator sets the creator royalty at 0%, there will be no platform fees. However, if a certain percentage is set for creator royalty, the accrued fees will be divided in an 8:2 ratio between the creator and the platform.
What is the MINT token?
MINT is the foundational platform token of Mint Club, playing a vital role in its ecosystem. To enhance functionality and promote the use of the bonding curve mechanism globally, Mint Club issues platform tokens with MINT as their base asset. This approach links MINT's valuation to the increasing use and functionality within the ecosystem.
MINT is currently bonded with three utility tokens: MINTDAO for governance, CREATOR for premium features, and GRANT for ecosystem funding. Moreover, over 4,700 bonding curve assets from Mint Club V1 also utilize MINT as their base asset.
What are the platform utility tokens (MINTDAO, CREATOR, and GRANT)?
The platform utility tokens of Mint Club are designed to enhance the use of its bonding curve mechanism and its application features. They are issued as bonding curve assets with MINT tokens as the base asset.
MINTDAO: This governance token enables holders to submit and vote on protocol-level proposals. Additionally, 50% of the platform's revenue is used to purchase and burn MINTDAO tokens.
CREATOR: A utility token for bonding curve token/NFT creators, providing access to premium features on the Mint Club platform.
GRANT: An ecosystem funding token that supports the acceleration of bonding curve projects and creators. The other 50% of the platform's revenue is allocated for purchasing GRANT tokens.
Do I need to create a landing page for my asset, or does Mint Club provide one?
Mint Club offers an integrated asset trading interface through a dedicated asset detail page for your bonding curve token or NFT. On this page, users can access essential information about your token and perform minting (buying) or burning (selling) actions. You have the option to upload a token image and include website information, linking to any external project page or resources you might have.
What are the steps after asset creation? Will it automatically list on a DEX?
Once your bonding curve token or NFT is launched through Mint Club, it becomes immediately tradable on your asset detail page. The bonding curve you set up will facilitate the token's minting (buying) and burning (selling) processes.
Additionally, you or other token holders can establish a separate liquidity pool on external platforms like Uniswap or PancakeSwap. Since Mint Club tokens are ERC20-compliant, they are compatible with most DEX platforms. However, creating an external liquidity pool may lead to arbitrage opportunities between this pool and the Mint Club's bonding curve pool.
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