The world’s largest cryptocurrency exchange, Binance, announced a new “token generation event model” for its Binance Wallet, set to utilize a bonding curve mechanism.

This initiative aims to provide users with another way to participate in Token Generation Events (TGEs), joining Binance’s existing suite of launchpad products.

The first token under this new model, developed in collaboration with the Four.Meme launchpad, is scheduled for announcement Wednesday.

Differentiating Factor: Application Process

Unlike some competitors like Pump.fun where tokens can be created via a brief application, Binance’s new feature requires users to apply before launching their token. A Binance spokesperson confirmed this prerequisite for TGEs via Binance Wallet.

Connection to Four.Meme

The new model builds upon the success of Four.Meme, a Binance Smart Chain-based launchpad leveraging bonding curves. Four.Meme continues to operate separately as Binance expands its own TGE capabilities.

What is a Bonding Curve?

A bonding curve is a dynamic pricing mechanism used within Token Generation Events. The token price adjusts automatically on a predefined curve based on the quantity purchased directly during the event. This differs from fixed-price pre-sales by potentially rewarding early buyers.

As explained by Binance, “A bonding curve is a dynamic pricing model… price gradually increases along a predefined curve.”

Binance’s TGE Portfolio

Binance Wallet previously offered various TGE methods, all requiring project applications. While introducing the bonding curve mechanism, this application step remains mandatory. After the TGE concludes, successful tokens may debut on Binance Alpha and potentially gain access to listing on Binance’s main exchange.