By The idea: a constant-product curve with a head start
Pons prices tokens with a constant-product bonding curve - the same family of math behind an AMM pool - but it doesn't start from zero reserves. Each launch config sets a phantomQuote value: a virtual reserve added on top of whatever real quote assets have actually been deposited, so the very first buy doesn't face the extreme price impact an empty curve would otherwise produce.
In code terms, a token's initial tradable supply is set as supply * phantomQuote / (phantomQuote + graduationThreshold) - the phantom reserve and the graduation threshold together decide how much of the total supply is available to buy before the curve reaches its graduation point.
Where fees come out of every buy
Three separate fee rates can apply to a single buy: the curve fee (curveFeeBps), the creator tax (creatorTaxBps), and - during the launch window only - the snipe tax (snipeTaxBps). These stack additively into one total, and that total is taken off the top before the remainder buys tokens: netQuoteIn = quoteIn - (quoteIn * totalFeeBps / 10,000).
If the combined fee rate would ever reach or exceed 100% (10,000 basis points), the buy simply produces zero tokens rather than a negative or nonsensical result - a safety clamp built into the pricing math itself, not something a caller has to check for separately.
Example fee stack
| Fee | Applies when | Goes to |
|---|---|---|
| Curve fee | Every buy and sell | Protocol, per its fee policy |
| Creator tax | Every buy and sell | Token's creator fee recipient |
| Snipe tax | Launch window only, non-exempt wallets | Protocol, per Pons's launch-tax design |
FAQ
- Does a higher phantom reserve make a token cheaper to buy early? Yes - a larger phantom reserve relative to the graduation threshold smooths the early price curve, since it acts as pre-existing liquidity the real buy is trading against.
- Can total fees ever exceed 100%? The math clamps this - if curve fee, creator tax and snipe tax combined would reach or exceed 10,000 basis points, the buy returns zero tokens rather than an invalid result.
- Is the phantom reserve real quote-asset liquidity? No - it's virtual, used only for pricing math. Real reserves are whatever quote assets buyers have actually deposited into the curve.
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