Triathon NFT Auction Mechanism Encourages More Participation in Auctions
The auction mechanism implemented in the Triathon NFT market can maximize the expected income of NFT creators and auctioneers so that all participants in the auction can be rewarded for actively participating in the auction.
The aim of this is to increase the popularity of the auction and to improve the chances of successful auctions.
The following principles are embedded in the Triathon auction market to ensure active participation:
1. Auction posters can continue to receive profits in the auction process after posting an item. For each transaction of auction items, auction posters are eligible to receive 24% of the 10% premium (which is added automatically when placing a bid);
2. When the current bidders bid is exceeded by new bidders in the auction process, the current bidder can immediately recover the principal and get 40% of the 10% premium as income;
3. During the auction, 16% of each premium will enter the prize pool and will be distributed to the last bidder (thus winner) at the end of the auction.
To make the posted principles easier to understand we hereby give an example:
Alice submitted an NFT ship priced at 100 TRIAS onto the Market. Bob put a bid of 110 TRIAS on this NFT ship. Alice receives 2.4 TRIAS (24% of the 10 TRIAS (10% of 100 TRIAS original bid) premium).
Further in the auction Colin places a bid for 121 TRIAS. In this case, Alice receives 2.64 TRIAS (24% of the 11 TRIAS (10% of the 110 current highest bid) premium). Bob recoupes his 110 TRIAS bid and receives an additional 4.4 TRIAS (40% of the 11 TRIAS premium in Colin’s bid).
After Bob and Colin placed their bids no other bids were received until the auction ended.
In this specific auction process, Alice won 105.04 TRIAS in total (100 for the NFT and 2.4 and 2.64 TRIAS for the bids received). Bob earned 4.4 TRIAS despite not winning and Colin won the auction where he got the NFT and received 3.36 TRIAS (16% of the 21 TRIAS that have been bid over the 100 TRIAS starting price).
For details, please refer to Triathon Playbook: https://triathon.gitbook.io/triath/testgroup/market