As discussed in the Onomy Official Telegram, here’s the proposed Dutch Auction structure:
The final bid price for each tranche will be calculated as the tranche discount to the market price at the end of the auction.
For illustration, if market price at end of auction is 3.8 cents (or $0.038), and the first bid is 10% less, that would set the initial bid price at:
Initial Bid Price = 3.8 cents - 10% of 3.8 cents
= 3.8 - 0.38
= 3.42 cents (or $0.0342)
Each bid period will be for 24 hours. Starting with an initial 10% discount, the discount will drop by an additional 10% every 24 hours until reaching the target of $100,000 in USD, here’s how the schedule looks:
Dutch Auction Schedule
Initial Bid Phase:
- Bid Start Time: Day 1, 15 UTC (July 30)
- Initial Discount to market price: 10%
- Bidding period: 24 Hours
Price Drops (24 hours between each):
-
Drop 1 (Day 2): Price after 24 hrs
- Discount to market price: 20%
- Bidding period: 24 Hours
-
Drop 2 (Day 3):
- Discount to market price: 30%
- Bidding period: 24 Hours
-
Drop 3 (Day 4):
- Discount to market price: 40%
- Bidding period: 24 Hours
-
Drop 4 (Day 5):
- Discount to market price: 50%
- Bidding period: 24 Hours
In the event the full target amount is not raised by day 5, the DAO may begin a traditional auction for the remainder.
All bidders must agree to a 6 month cliff of their tokens, followed by linear monthly unlocks of the remainder across 6 months.