# Calculations

**The Lazarus Bonding Curve Formula**

To incentivize early adopters who risk their capital to revive a dead project, we use a quadratic bonding curve. This rewards users who wrap and buy early with a lower price entry.

<figure><img src="https://2477727664-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FnK8fyH6RUV8rOXGdje7N%2Fuploads%2FBpjy2X5vDcobweLbTGEu%2Fimage.png?alt=media&#x26;token=ff17398a-b35a-4ebe-83b1-926299bd726e" alt=""><figcaption></figcaption></figure>

Why Quadratic?

A linear curve ($n=1$) offers steady growth. A quadratic curve ($n=2$) starts very cheap but accelerates rapidly. This creates a powerful "FOMO" (Fear Of Missing Out) effect required to jolt a dead community back to life.

**Shell Value Valuation Metrics**

How do we value a dead token? We use the Shell Value metric. A dead token is essentially a "shell company" with a list of shareholders.

<figure><img src="https://2477727664-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FnK8fyH6RUV8rOXGdje7N%2Fuploads%2F2uQ5X5DUoHdlQO8TwHqt%2Fimage.png?alt=media&#x26;token=8479b70e-1092-420d-afbf-a426adbf66a7" alt=""><figcaption></figcaption></figure>

If the current market cap of the dead token is $5,000, the Lazarus Protocol identifies this as an undervalued asset with a potential 5x upside simply by reactivating the community. This calculation is what drives the AI Agent's decision to target a specific token.
