Sato has released a new mechanism document that further explains the operational logic of its Curve system. According to Odaily, the document reveals that Sato's Bonding Curve is not a fully symmetrical exchange system. Users mint and burn tokens using different pricing logic, with the burn price structurally lower than the mint price due to a correction factor.
The document describes the Curve as an 'issuance system plus a final buyback pool,' rather than a fully redeemable support system. Initially, the Curve is primarily responsible for token issuance. Once external market liquidity matures, it transitions to act as the 'final buyer,' providing on-chain buyback functionality when secondary market liquidity is insufficient.
Previously, community developers pointed out a state misalignment within Sato's Hook, specifically between ethCum and totalMintedFair. This misalignment led to users buying at a high Curve price and selling at a low Curve price. Some ETH remains in the Hook reserve but cannot be fully redeemed through the sell path.