A TGE (Token Generation Event) in Binance Wallet gives users early access to new token offerings before public trading begins. This provides a secure and convenient way to access new token offerings directly within Binance Wallet (Keyless).
For more information about TGE’s, please read Frequently Asked Questions on Binance Wallet TGEs, Pre-TGEs, and Booster Campaigns.
A bonding curve is a mathematical mechanism used in blockchain and token economics that defines the relationship between a token's price and its circulating supply. This mechanism autonomously determines how the token's price adjusts as the supply increases or decreases.
Binance Wallet offers two types of Token Generation Events (TGEs): fixed-price and bonding curve. In the latter, the bonding curve mechanism is applied to dynamically manage token pricing and availability throughout the sale. Instead of a fixed token price, during the event, users buy tokens with BNB, subject to individual purchase limits and at a price determined by the bonding curve. These tokens can only be transacted within the Bonding Curve ecosystem (i.e. between other users who are also participating in the Bonding Curve based TGE) during the subscription period. Users can trade these tokens on the Event Landing Page before the official launch, allowing early trading and greater participation.
If the maximum purchase cap is temporarily reached, buy orders placed afterward will enter a pending state and are fulfilled only when tokens are sold back by other participants. Orders placed during this limit-up phase cannot be cancelled, and the BNB used will remain locked until the event concludes. The event operates on a countdown timer; once it ends, tokens become freely tradable and are listed on Binance Alpha. If the event is oversubscribed, users who do not receive tokens can claim refunds after the event concludes.
Phase 1: Purchase Using Bonding Curve Pricing
Users place buy orders for tokens with BNB through their Binance Keyless Wallet following a first-come-first-served model, and these tokens can only be traded within the Bonding Curve ecosystem during the subscription period. Prices adjust dynamically based on demand, and individual purchase limits apply to ensure fair participation.
Phase 2: Managing Sold-Out and Ongoing Purchases
If the maximum cap is temporarily reached, buy orders can still be placed and may be fulfilled as other users sell tokens back, helping maintain token availability throughout the event. Please note that orders once placed cannot be cancelled, and the BNB used will remain locked until the TGE ends.
Phase 3: Event Countdown and Conclusion
The TGE runs on a fixed countdown. After it ends, new orders are no longer accepted. Unfulfilled or excess orders due to oversubscription are canceled, and users can claim refunds for their unused BNB after the event concludes.
Phase 4: Token Transferability and Listing
After the event closes, the tokens become transferable outside the Bonding Curve TGE ecosystem. The project then lists tokens on Binance Alpha, opening the market for trading.
Important: As this is a Bonding Curve-based TGE, token prices are not fixed and vary based on demand. The final price of tokens you claim may be different from what you expect. Please ensure you understand and accept the risks involved with Bonding Curve TGEs.
The price of tokens acquired through participation in the Bonding Curve Based TGEs is not fixed and it can fluctuate depending on market forces and demand for the token. Tokens can only be transacted between users also participating in the Bonding Curve Based TGE during the subscription period. You are responsible to ensure you understand and accept the risks associated with participating in Bonding Curve Based TGEs, including but not limited to the market volatility, dynamic pricing and project-specific risks. Participation in Bonding Curve Based TGEs does not guarantee any profit, return, or liquidity. Users should conduct their own due diligence before participating.
The Bonding Curve model offers several key benefits:
The number of tokens can be calculated using the curve's public mathematical function. Based on your investment amount and the current total supply, a formula (e.g., "Number of tokens = Investment amount ÷ Current price") will determine your allocation. Smart contracts automatically perform the calculation and display the number of tokens you can obtain before you confirm the transaction.
The token price is determined by a predefined mathematical function linked to the total circulating supply. When tokens are purchased, the supply increases as new tokens enter circulation, causing the price to rise according to the curve's parameters; conversely, when tokens are sold (resulting in a decrease in supply), the price falls. This price-supply relationship is enforced algorithmically, typically through smart contracts.
Increased purchasing expands the token supply as new tokens enter circulation. According to the rules of the bonding curve, the price will rise accordingly. Subsequent buyers usually have to pay a higher price for the token because the growth in supply pushes the price up along the curve.
If a surge in demand leads to a rapid expansion of supply, the price may soar exponentially.
All the funds raised through the Bonding curve after the TGE will be added to the liquidity pool.
After the TGE ends, the bonding curve may remain in effect, still regulating the price based on changes in supply. Alternatively, if the token is listed on external markets (such as exchanges), its price may decouple from the curve and be dominated by market forces such as trading volume and investor sentiment. However, residual effects of the curve (such as early supply-price dynamics) may still affect long-term valuation.
