# Bonding Curve A [**Bonding Curve**](https://yos.io/2018/11/10/bonding-curves/#:~:text=A%20bonding%20curve%20is%20a,between%20price%20and%20token%20supply.\&text=This%20bonding%20curve%20says%20that,number%20of%20tokens%20minted%20increases.) defines the relationship between the price and token supply. The lower the reserve ratio in a bonding curve, the higher the effect of each buy on the value of tokens. In a lower bonding curve, at a \~25% reserve ratio, each redeemed token increases the value of other tokens, due to limited supply and growing demand. ![There are many types of curves - we have chosen a quadratic bonding curve.](/files/dGxWMW79iEIxxeSlca4j) We have chosen to target a Reserve Ratio of 25% in order to best reward early backers and members of $MYO, who will be purchasing tokens at a lower initial price. As demand for $MYO increases over time through the open markets and our own client services, and the planned $MYO distributions from the Community Treasury continue to decrease over time, the price of $MYO should increase exponentially. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://whitepaper.myosin.xyz/home/usdmyo-tokenomics/bonding-curve.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.