Auctions

🏆 Repository Auctions

The Auction Mechanism

Repository auctions are the cornerstone of Repo.trade's tokenization process. They provide fair token distribution, price discovery, and initial funding for open-source projects. While billions flow into open source, individual contributors typically receive pennies. Our auction mechanism helps correct this imbalance.

⏱️ Auction Timeline

Each repository auction follows a structured 14-day timeline:

  1. Announcement Phase

    • Repository details published
    • Auction parameters shared
    • Community notification
  2. Active Auction (14 Days)

    • Daily token distributions of 35.7M tokens
    • USDC contributions accepted
    • Real-time updates on participation
  3. Conclusion Phase

    • Final contributions processed
    • Token distribution calculations
    • Preparation for claiming and trading

💰 Daily Distribution Mechanics

The auction operates with a unique daily distribution model:

  • Total Auction Allocation: 500M tokens (50% of total supply)
  • Daily Distribution: 35.7M tokens per day (500M divided by 14)
  • Duration: 14 consecutive days
  • Distribution Method: Pro-rata based on daily USDC contributions

This approach ensures:

  • Fair participation throughout the auction period
  • Prevention of front-running or last-minute manipulation
  • Effective price discovery over time
  • Broad distribution among supporters

📊 How Contributions Work

Participating in an auction is straightforward:

  1. Connect Your Wallet

    • Use a Solana-compatible wallet
    • Ensure you have sufficient USDC
  2. Choose Your Contribution Amount

    • Decide how much USDC to contribute each day
    • No minimum or maximum limits (beyond practical constraints)
  3. Submit Your Contribution

    • Send USDC to the auction smart contract
    • Receive confirmation of your participation
  4. Daily Token Calculation

Your Tokens = (Your USDC Contribution / Total Daily USDC) × 35.7M Tokens
  1. Track Your Allocation
    • Monitor your expected token allocation
    • Adjust strategy for subsequent days if desired

🎯 Auction Benefits

The auction mechanism creates advantages for all participants:

For Repository Owners

  • Immediate funding through auction proceeds
  • Fair valuation of their repository
  • Broad distribution of tokens to create an engaged community
  • Preparation for sustainable trading fee revenue

For Contributors

  • Equal opportunity to participate regardless of contribution timing
  • Transparent and predictable token allocation
  • Ability to adjust strategy over the auction period
  • Early access to repository tokens

For the Ecosystem

  • Correction of the imbalance where billions flow into open source while contributors get pennies
  • Market-based valuation of open-source projects
  • Aligned incentives between developers and supporters
  • Sustainable funding for critical digital infrastructure

🔄 Post-Auction Process

After the auction concludes:

  1. Token Claiming

    • Contributors can claim their tokens
    • Tokens become available in their wallets
  2. Liquidity Pool Creation

    • 40% of tokens plus collected USDC seed the initial liquidity pool
    • Trading parameters are established
  3. Trading Activation

    • Repository tokens become tradable
    • Fee distribution begins, with 50% going to repository owners

The auction is just the beginning of a repository's journey on Repo.trade, setting the foundation for sustainable funding through trading fees and community engagement.