Swarm’s Community Governance: The Bonding Curve Vote

On February 29, 2024, the Swarm Foundation addressed concerns about the current relevance of the Swarm bonding curve design. They announced that the bonding curve’s existence would be put to a vote, offering the community the choice to either shut it down or validate its continuation.

The voting on the bonding curve will take place in the coming weeks. The initial timeline for the vote is outlined below, with additional details to be shared with the community shortly.

The bonding curve has been integral to the initial design of the Swarm network, serving a crucial role in ensuring liquidity and price transparency. However, innovation always requires reflection and adaptation, particularly in light of the complexities and challenges that come with new technologies and project phases. For this reason, the decision on whether to retain the bonding curve mechanism will be entrusted directly to whom it rightfully belongs: the community. This reflects the Swarm Foundation’s commitment to empowering the community in shaping the network’s trajectory.

The bonding curve

The bonding curve is a mathematical function designed to automatically adjust the token price based on its supply, offering a transparent and predictable pricing mechanism. Initially deployed to enhance resilience against price manipulation and establish a fair distribution system that discourages inflation, the bonding curve ensures token availability for purchase regardless of market supply and demand (more info can be found here).

However, after almost three years, it’s now time for the community of token holders to determine the direction they wish Swarm to pursue.

Timeline

• Announcement of the vote: 29 February
• Voting opens: 28 March
• Voting closes: 25 April
• Potential shutdown of the bonding curve: 4 May, contingent upon community consensus.

Governance

The upcoming vote represents more than just a decision on the bonding curve: it marks the first step towards decentralising the decision-making process around the Swarm Network, enacting the Swarm community’s power in shaping the path forward. This process is a testament to the Swarm Foundation’s shared commitment towards creating a decentralised future for the web.

More details will come. In the meantime, join the discussion on Discord.

Together, let’s decide our path forward.