๐Ÿ‡ณ๐Ÿ‡ฑ Dutch Auction

Dutch Auctions on Burnt Finance

Dutch auctions operate via taking into account all bids in order to arrive at the final price of a designated asset.

In a Dutch auction, the price of an asset is set by the seller. This price continues to drop over given epochs. However, potential purchasers are able to place bids along the way and purchase the asset at those prices. For instance, a creator may begin an NFT Dutch auction at $100 and set the price to drop by $5 every hour. This means that the first purchaser may have bought the NFT at $100 while another purchaser may be able to buy the same NFT at $90 two hours later.

The Dutch auction ends when there are no remaining NFTs left to be sold or when the designated time for the auction ends.