I bought a couple thousand sato tokens bought a lot of $SATO from $0.19 - $0.24.
- THIS IS A GAMBLE Play.
- READ THE WHITEPAPER/INFO BEFORE BUYING
sato
a specter has returned to ethereum: the specter of code that runs without an operator
sato is an erc-20 on ethereum. lowercase name, lowercase symbol, eighteen decimals. it is an asset. it does not launch and graduate and migrate
issuance happens through one contract, a uniswap v4 hook, set as the only minter at deployment and locked there. when ether arrives, the hook computes how much sato to mint and keeps the ether as reserves. the price of the next sato is p(eth) = (S/K) · e^(eth/S), with S = 500 ether and K = 21,000,000. the only variable is eth, the cumulative net ether ever paid in
cumulative supply is the integral of that price: minted(eth) = K · (1 − e^(−eth/S)). it approaches K but never reaches it. there is no graduation event, no liquidity migration
sells run the same function in reverse. anyone holding sato can burn their tokens against the hook's reserves and receive ether priced by the inverse curve, less the fee. the hook holds every wei of net ether ever paid in.
a 0.3% fee is taken on every buy and every sell. it stays in the hook permanently. it cannot be withdrawn, governed, voted on, or redirected. it isn't a treasury. it is a counterweight: a small automatic tax on round-trip activity that prevents the curve from being a free thing to abuse, and prevents anyone, including us, from extracting value from it.
three constraints keep the curve hard to game. a single buy is capped at 5 ether, so no one can vacuum a meaningful share of supply in one transaction. selling in the same block as your last buy reverts, which makes flash-loan arbitrage uneconomic. and for the first hundred blocks after deployment, every buy received a random multiplier between 0.9 and 1.1: a tax on the bots tuned for the exact deployment block, costing them 10% on average. that window has closed. from this point onward, the contract is fully deterministic.
a consequence of S = 500 is that the early curve is intentionally flat. the first hundred ether of cumulative buys move the price by less than 25%. the first thousand move it about 7×. only as the curve approaches its asymptote, somewhere past 2,300 cumulative ether, does the price reach roughly 100× the launch price. early buyers pay nearly the same price as one another; late buyers pay much more. this is the math, not a defect of it.
eventually the curve fills. when 99% of K has been minted, selfDeprecated flips on-chain and locks. from that moment forward, sato can't mint more tokens. the contract cannot create another unit even if everyone involved wanted it to.
issuance ends. the token does not.
trading continues on whatever venues exist: uniswap pools, exchanges, peer-to-peer transfers, things that haven't been built yet. the bonding curve hook stays online and continues to accept sells, paying ether out of its reserves. sells reduce supply by burning the tokens they consume; no buy can bring that supply back. the cap, once hit, is one-way.
what changes is who makes the market. during issuance, the curve is the market. after issuance, the holders are. price on secondary pools is set by liquidity providers, not by a function. the curve becomes two things at once: a permanent floor, deterministically buying sato back for ether as long as the reserves hold, and a permanent on-chain record of how the supply got distributed in the first place.
we did not pre-mint. we hold no allocation, no admin role, no pause function, no upgrade path. there is nothing to extract from the hook other than by selling sato back through the inverse curve like anybody else. if everyone who shipped this disappeared tonight, the contract would run tomorrow against the same rules and the same prices. that is what we mean by "no operator." that is the only feature.
