ndau is released and sold according to a bonding curve we call the Next Issue Price Curve.
The Next Issue Price Curve is an S-shaped curve consisting of a predetermined sequence of prices that new ndau from the 30m reserve will be sold at, should the market price reach each new price level.
ndau did not have an ICO and there was no pre-sale of ndau. The first 1000 ndau were bought for $1.00 each by the earliest folks involved in the project (no one got any from the reserve for free) and all new ndau since have been bought along this curve that increments in price every 1000. All net proceeds go into the endowment of assets that support a floor price. Once a new price level tier of ndau has been reached by the market, that becomes the new Next Issue Price which monetary policy is geared towards providing “buoyant” incentives that tend to drive it back there when market dips happen.
The Three Phases
During each of the three phases the Next Issue Price moves along an exponential xn curve, growing more slowly in each phase.
- Phase 1: The Next Issue Price doubles 14 times from $1 to $16,384 as the first 10,000,000 ndau are released into circulation.
- Phase 2: The Next Issue Price then doubles 4 times in the second phase to $262,144,
- Phase 3: The Next Issue Price doubles once more in the third phase to $524,288 after all 30,000,000 ndau have been released.