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.
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?