Every Stargaze user is associated with their own creator coin. A creator coin is minted on a bonding curve (with STARS reserves) that favors early buyers. STARS reserves used for buying creator coins are staked on the network, earning yield for the creator.
The creator coin curve is a power function of the form:
x is the reserve asset (STARS), while
y is the price of the creator coin.
n control the incline of the curve, and
c lowers and lifts the curve.
Stargaze will use the following constants for creator coins:
m = 1/400n = 2c = 0
This generates the following curve:
To calculate the buying price for new creator coins, or for selling them, we have to calculate the area under the curve, or the integral. This formula is:
r is the reserve balance (amount of STARS) required to be in the place for the creator coin's supply to be
Buying a creator coin is the crypto-native way of "following" a user. In the Stargaze web app, users of the creator coins you own will show up higher in your feed. This gives users control over constructing their own feed algorithm, instead of an opaque algorithm used in legacy social media.
Whenever a user earns rewards from their posts being curated, it get added to their creator coin bonding curve, increasing the coin price.
Creator coins are only for registered Stargaze users and are opt-in. A user's Twitter account has to be verified in order for them to mint creator coins.
Creator coins will be interoperable as ERC-20s in Ethereum, transferrable over Gravity Bridge.
Creator coins are implemented as staking derivatives. This enables users to earn staking yield on their coins. Then can also earn DeFi yield by transferring to other protocols in the Cosmos and Ethereum ecosystems.