FungoLabs Genesis goes up for auction tomorrow. Many people may not be familiar with this bidding mechanism, so here’s a quick rundown of how @FungoLabs works.
This isn’t a traditional Dutch auction. It uses sealed bids and a uniform clearing price: everyone submits their own bid, and nobody can see anyone else’s bids during the auction. Once it ends, all bids are revealed, and every winning bidder pays the same price.
For example, suppose only 3 NFTs are being auctioned:
A bids 3,000 cZAMA
B bids 1,500 cZAMA
C bids 1,000 cZAMA
D bids 500 cZAMA
The 3 highest bidders win, so A, B, and C are successful. But winning doesn’t mean you pay your own bid. Everyone pays the lowest winning bid of 1,000 cZAMA.
A bid 3,000 and pays 1,000, with 2,000 refunded
B bid 1,500 and pays 1,000, with 500 refunded
C bid 1,000 and pays 1,000
D didn’t win, so the full 500 is refunded
That’s how the uniform clearing mechanism works. So how should you bid?
My personal advice: bid what you’re genuinely willing to pay. Don’t just try to undercut everyone, and there’s no need to blindly bid higher either. A high bid doesn’t mean you’ll end up paying that much; if you win, you’ll pay the uniform clearing price.
Also, this auction uses Zama FHE encryption, so others can’t see your bid during the auction. This helps reduce copycat bidding and last-minute sniping. Work out your limit beforehand, and don’t bid impulsively!
This isn’t a traditional Dutch auction. It uses sealed bids and a uniform clearing price: everyone submits their own bid, and nobody can see anyone else’s bids during the auction. Once it ends, all bids are revealed, and every winning bidder pays the same price.
For example, suppose only 3 NFTs are being auctioned:
A bids 3,000 cZAMA
B bids 1,500 cZAMA
C bids 1,000 cZAMA
D bids 500 cZAMA
The 3 highest bidders win, so A, B, and C are successful. But winning doesn’t mean you pay your own bid. Everyone pays the lowest winning bid of 1,000 cZAMA.
A bid 3,000 and pays 1,000, with 2,000 refunded
B bid 1,500 and pays 1,000, with 500 refunded
C bid 1,000 and pays 1,000
D didn’t win, so the full 500 is refunded
That’s how the uniform clearing mechanism works. So how should you bid?
My personal advice: bid what you’re genuinely willing to pay. Don’t just try to undercut everyone, and there’s no need to blindly bid higher either. A high bid doesn’t mean you’ll end up paying that much; if you win, you’ll pay the uniform clearing price.
Also, this auction uses Zama FHE encryption, so others can’t see your bid during the auction. This helps reduce copycat bidding and last-minute sniping. Work out your limit beforehand, and don’t bid impulsively!