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Capital Formation

Capital Formation Process

The capital formation process uniquely prioritizes community participation before opening to larger investors. By making DAO tokens initially available through a bonding curve, the protocol enables community members to acquire ownership of the DAO at discovery prices using SPRD.

The ratio between bonding curve and investor allocations, set during DAO creation, determines how many tokens are available in each phase - for example, a 40/60 ratio would make 40% of tokens available through the SPRD bonding curve and 60% during the asset deposit window.

Phase 1 - Bonding Curve

  • Initiates and configures a DAO, collects the launch fee in SPRD tokens, then adds the DAO to the bonding curve
  • Price discovery through active trading on the bonding curve, with all transactions conducted in SPRD
  • Progresses to the investor window phase once the DAO reaches the target SPRD threshold on the curve
  • Transitions to the active market trading through automatic liquidity provision on Cetus DEX

Phase 2 - Investor Window

  • Accepts whitelisted assets during a fixed window (minimum of 24 hours) configured at DAO creation
  • Converts all deposits to SUI equivalent using real-time Cetus pool pricing mechanism
  • Calculates final token allocation based on relative SUI value contribution
  • Distributes tokens according to the predefined investor allocation ratio and individual contribution
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