Key Price Dynamics and Supply Changes

The price of each key is dynamically adjusted by the AMM:

  • Price Increase: When more keys are bought, the supply increases, and the AMM raises the price. This price increase follows a logarithmic scale, meaning a 10x increase in supply results in a 10x increase in price.

  • Price Decrease: Conversely, when keys are sold, the supply decreases, and the AMM lowers the price. The sell price is always 70% of the current buy price, providing an instant liquidity mechanism for keyholders.

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