🛠️How Gochu.fun Works

Overview of Gochu.fun mechanics

How Gochu.fun Works

Gochu.fun is a platform designed to offer a fair, transparent, and dynamic token launch and trading experience. Here’s an in-depth explanation of how the platform operates:

1. PKS Linear Bonding Curve (In-Depth)

The PKS (Piecewise-Kernel-Smoothing) Linear Bonding Curve is a key feature that ensures fair pricing and smooth market dynamics for tokens on Gochu.fun. It adjusts token prices based on supply and demand, providing a predictable price trajectory.

A. What is a Bonding Curve?

A bonding curve is a mathematical model that defines the price of a token based on its circulating supply. As more tokens are bought, the price increases. This dynamic system prevents the market from having static or unpredictable prices. In Gochu.fun, the PKS curve operates in a linear fashion, meaning the price rises steadily and predictably as more tokens are purchased.

B. How PKS Works

• Linear Pricing: The price of the token increases by a fixed amount with each new purchase. For example, for every additional token bought, the price may increase by a small fixed amount, making the price increase smooth and steady.

• Supply and Demand: The price adjusts in response to supply and demand. When more tokens are bought, the price rises gradually. This encourages early participation while maintaining fairness across the market.

• Predictability: The linear nature of the PKS curve ensures that the price is transparent and predictable, meaning that users know exactly how much their token will cost as more tokens are issued.

C. Benefits of PKS

• Fair Pricing: A linear curve creates a predictable price path, reducing volatility and preventing sudden price hikes.

• Encourages Holding: Users are incentivized to hold tokens for the long-term as the price increases steadily, rewarding early adopters.

• Sustainable Liquidity: As more tokens are purchased, the liquidity pool grows, ensuring that the market remains stable and liquid.

D. Example of How PKS Works

For example, a token starts at a price of $1. As users buy tokens, the price increases in small increments, e.g., by $0.01 per token. As a result, the first buyer gets tokens at $1 each, while the next buyer will pay $1.01 per token, and so on.

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2. Anti-PVP Mechanism

To ensure fairness and prevent early manipulation, Gochu.fun implements the Anti-PVP (Anti-Player-Versus-Player) mechanism. This feature discourages early sellers from exploiting the system and ensures that later buyers aren’t penalized.

How It Works

• Penalty for Early Sellers: If a token holder sells their tokens before the token has graduated, they incur a 30% penalty on the sale.

• Liquidity Boost: Half of the penalty (12.5% of the sale amount) is added to the liquidity pool, helping to stabilize the price and reduce volatility.

• Fairness: This mechanism encourages long-term holding and ensures that later buyers are not negatively impacted by early selling, thereby creating a healthier market environment.

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3. Token Graduation & Raydium Migration

Tokens launched on Gochu.fun have the opportunity to graduate and migrate to Raydium, a decentralized exchange, when they reach specific market milestones. This helps to provide deeper liquidity and broader exposure.

How Graduation Works

• Market Milestones: Tokens must meet certain criteria, such as a stable price and enough market participants, to be eligible for graduation.

• Raydium Migration: Once a token graduates, it can migrate to Raydium, providing it with higher liquidity and a more robust trading environment.

• Why It Matters: Graduation and migration ensure that tokens continue to grow and evolve, providing a more predictable and stable experience for users. Graduated tokens are more likely to gain long-term traction in the market.

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4. Token Launch & Fees

Launching a token on Gochu.fun is easy and free, with the only cost being the Solana transaction fees. You can create a token with just a few clicks, and there are no upfront fees for the token creation process.

Optional Pre-Purchase

To avoid the risk of snipers front-running your own token buy, you have the option to pre-purchase your own tokens. This helps secure your position and reduces the chance of paying more due to sudden price changes from sniping bots.