Discussion on Trava Knight Auction
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1. Idea
NFT is considered as a digital asset, which enhances its uniqueness just like visible properties (paintings, real estate, houses, cars,...). Therefore, when mentioning NFT, the NFT auctions on blockchain platforms are crucial. Auction helps users to evaluate NFT value more clearly. Especially in the case of Trava Knight NFT, these values will clarify the position of Knight NFT in the Trava Lending Pool when NFT-collateralization is enabled.To provide exact pricing for the collateralization in the Trava lending pool, the auction mechanism and rules in auction are important, which help to attract more participants and increase the higher value of Knights. Our auction mechanism was announced last week. However, as a community-oriented project, we would like to receive and discuss other ideas about the auction mechanism to prepare a systematic mechanism for NFT-collateralization in the future.
2. Current Status
We have introduced the Trava Knight Auction mechanism in the latest article on our Blog. We offer rules as follows:- The time range for an auction is from 1 - 7 days.
- Auction is ONLY cancellable when it has NO BIDS. After the first bid comes in, neither you nor we can cancel it, as rules are written in the smart contract.
- When the bidding countdown is less than 5 minutes left, every new bid will extend the countdown by 5 minutes.
- Each bid price will be increased by at least 5% of the previous one. Once the countdown ends, the auction item will be obtained by the last/highest bidder.
- The most important rule: 5% of the price increase for each bid is distributed to the previous bidder, and the remaining 95% would be the income of the auction publisher if it’s the last bid or returned to the bidder when it’s outbid.
3. Discussion
What do you think of our current system and what do you expect in auction V1? Is there anything we should change to improve our auction mechanism? -
@tritrava Everything looks nice only if the time range for auction can be change to 1-5 days
And if countdown extention can changed to 30minutes would be more reliable -
@tritrava It's good to hear about the Auction. However, I wonder if the time range should be shorter, like 12h to 5days, for example. I even think about the shorter period, such as 1 hour for some valuable items. It seems fun LOL
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@violeta yes 12h to 5 days would be better
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@s1018 Yes. It would be better that the waiting time is shorter. Imagine you really want to buy an exclusive item but still have to wait for 7 days LOL :)))))))
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@tritrava Is it possible to be flexible about the countdown period depending on the auction period?
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@vincente that's great, I will think about it
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@violeta Nice, we will have snapshot for user vote about auction time on Web this week
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Great idea V1. Nothing to add I guess
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@tritrava Maybe, sellers should have the right to cancel the auction even if the auction time is not over. Like, first I set the auction time for 7 days and after 3 days, I can cancel the auction and agree with the pricing of the bidder that I am satisfied with. What do you think about it?
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Wow love the 5% rule
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@anhhm000259 hmmm i dont think so, because with the protocols, if the auction doesnt have bidders then the seller can cancel the auction before the end time, your suggestion might not be necessary.
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@tonngokhong i think that it should be considered because even the auction has bidder but the seller has a second thought about auctioning the Armoury then he/she still can cancel it.
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@tritrava I think we should set a ceiling price for the auction, because some Knights are being sold for a ridiculous price. This could support the transactions function better and the bidders can be more confident in bidding.
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As a seller, I don’t think ceiling price is necessary because the price is not just the price of the Knight, it is also the amount of effort that sellers put in order to collect the rarity Knight.
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I think the ceiling price it is a good idea, it will help more bidders can join in the auction
