> For the complete documentation index, see [llms.txt](https://docs.neptun.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.neptun.finance/about-lbp/how-do-lbps-work.md). # How Do LBPs Work? **How Do LBPs Work?** LBPs start with a high token price, which is set intentionally to discourage early, large purchases and prevent whales from dominating the sale. The token price gradually decreases over a set period. This encourages participants to wait for a price they consider fair, helping to determine the token's market value through natural demand. The price of the token is influenced by both time and the amount of liquidity in the pool. When more participants buy tokens, the price stabilise or even increases, reflecting true demand. This mechanism ensures that the final price is a result of actual market demand, allowing a wider range of participants to join the sale at a price they deem reasonable. By preventing early buyers from scooping up tokens at low prices, LBPs promote more equitable token distribution, which is essential for building a strong and decentralised community. LBPs are designed to ensure that token sales are fair, transparent, and accessible, leading to better outcomes for both projects and investors. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.neptun.finance/about-lbp/how-do-lbps-work.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.