Fair Auction

What is a Fair Auction?

An "Fair Auction" is a token distribution method where tokens are sold through an auction mechanism. Participants may place bids, and the tokens are allocated based on the price. This approach is designed to determine the market price through a competitive bidding process.

How do Fair Auction's Work?

Here is a general outline of how a Fair Auction Token Launch could work:

  • Auction Rules: Clear rules for the auction are established, including the minimum buy amount, the duration of the auction, and any other specific terms participants need to be aware of.

  • Bidding Process: Participants place bids for the tokens they want to acquire. Bids could be in the form of the project's native cryptocurrency or another accepted currency.

  • Duration and Closing: The auction runs for a predetermined duration, allowing participants to place bids during that time. Once the auction period ends, the highest bids are determined.

  • Token Allocation: Tokens are allocated to participants based on the price.

  • Post-Auction Communication: The project communicates the results of the auction, including information on the final bid prices, the total amount raised, and any other relevant details.

  • Distribution: After the auction concludes, the project initiates the distribution of tokens to the winning bidders. The distribution process is often automated to ensure efficiency and accuracy.

How the token price is determined?

For instance: The fair launch auction will start with a $10m FDV, and the minimum price for each token is established at $0.1. Once the auction raises the first $1 million, the price discovery phase begins. During this phase, the price of each token will increase continuously with every purchase made.

Price = Total $ raised / sale circullating supply

It's important to note that regardless of when you decide to participate, everyone will receive $XYZ tokens at the same final price

Why Launch Using a Fair Auction?

Launching a token using a fair auction mechanism embodies the principles of fairness, inclusivity, and transparency. This approach is chosen to ensure the equitable distribution of tokens, allowing participants to bid based on their genuine interest and willingness to contribute.

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