> For the complete documentation index, see [llms.txt](https://bubblestocks.gitbook.io/bubblestocks-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://bubblestocks.gitbook.io/bubblestocks-docs/documentation/how-it-works.md).

# How it works

## Bonding Curve

Every BubbleStock launches on a **Meteora Dynamic Bonding Curve** with a fixed supply of **1 billion tokens**.

| Parameter                | Approximate value |
| ------------------------ | ----------------: |
| Starting market cap      |    **$10,312.50** |
| Quote-reserve target     |       **$33,000** |
| Market cap at graduation |      **$165,000** |

All launches use the same curve configuration. Selecting a different stock allocation does not change these targets. Dollar values reflect the quote-token price used when the configuration is created.

Approximately **800 million tokens** are available for trading on the curve, with approximately **200 million reserved for migration**. A separate **1,000-token leftover** is excluded from migration deposits.

Creators can make an optional **initial buy at launch**. This purchase advances the curve, so the first publicly displayed market cap may exceed the starting value.

Buys increase the price and add quote reserves. Sells decrease the price and remove quote reserves. 

### Trading Fees

Bonding-curve trades, including the initial buy, carry a **1.8% trading fee**, collected in the quote token and shared between the creator and protocol.

Holder reflections begin after migration, once the launch’s STOCK/USDC positions generate trading fees.

## Multipool Migration & Compounding Liquidity

### Migration Allocation

At graduation, the creator’s selected stock share determines how the quote reserve and migration token allocation are divided.

The stock share ranges from **10% to 50%**, in increments of **5 percentage points**, across **one to three STOCK/USDC pools**. Each selected stock pool receives a configured allocation of 10–50%, with the combined stock share capped at 50%.

The same combined percentage is applied to both sides:

* **Quote assets** allocated to stock pools fund STOCK/USDC liquidity.
* The corresponding **meme tokens are burned**.
* The remaining quote assets and meme tokens enter the canonical **MEME/STOCK trading pool**, which retains at least 50% of the migration allocation.

Reducing both sides proportionally preserves the final bonding-curve price when the MEME/STOCK pool opens.

#### Example: 30% Stock Allocation

The following illustrates the split before applicable fees and rounding:

| Destination             | Quote reserve | Migration meme tokens     |
| ----------------------- | ------------- | ------------------------- |
| MEME/STOCK trading pool | **$23,100**   | **140 million** deposited |
| STOCK/USDC pools        | **$9,900**    | **60 million** burned     |

The burn applies only to the corresponding migration tokens. Tokens already purchased by holders are unaffected.

A one-time protocol charge of **2% of the total quote reserve** is deducted from the reserved quote allocation before stock-pool seeding.

### Trading Fees & Compounding

The canonical MEME/STOCK pool charges a **1% trading fee**. Fees collected by the launch’s positions are allocated as follows:

| Recipient or purpose             | Share of collected fees |
| -------------------------------- | ----------------------: |
| Compounding STOCK/USDC liquidity |                 **80%** |
| Creator                          |                 **10%** |
| Protocol                         |                 **10%** |

The compounding allocation is allocated into the selected STOCK/USDC positions according to their configured weights.

## Stock Liquidity & Holder Reflections

### Shared Stock Liquidity

Memes supporting the same stock contribute positions to a shared **STOCK/USDC pool**. Their initial allocations and ongoing compounding collectively deepen liquidity.

Deeper liquidity can make the pool more competitive for aggregator-routed trades and available for integration into other DeFi applications. Each launch retains separate accounting for its rewards.

### How Reflections Work

The STOCK/USDC pools charge a **1% trading fee**. Each meme’s rewards are funded by its stock liquidity positions, including both the liquidity seeded at migration and all liquidity added through ongoing compounding. Fees earned by these growing positions are split as follows:

| Recipient             | Share of collected fees |
| --------------------- | ----------------------: |
| Eligible meme holders |                 **80%** |
| Protocol              |                 **20%** |

Holder rewards are proportional to token balances. As compounding builds each meme’s STOCK/USDC liquidity positions, reflections become increasingly supported by stock trading activity rather than the meme’s own volume. This creates a lasting source of potential rewards and an economic foundation for each meme **beyond its initial launch cycle**.

### Reward Payouts

Reflections are paid in **USDC**. Rewards are processed hourly and accumulate until a holder’s balance exceeds **10 USDC**. Each payout deducts **0.1 USDC** for processing.

Rewards are variable and not guaranteed.