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 customizable timeline:

  1. Announcement Phase

  2. Repository details published

  3. Auction parameters shared (period length and count)

  4. Community notification

  5. Active Auction (Multiple Periods)

  6. Configurable period length and number

  7. Token distributions proportional to contributions
  8. USDC contributions accepted

  9. Real-time updates on participation

  10. Conclusion Phase

  11. Final contributions processed
  12. Token distribution calculations
  13. Preparation for claiming and trading

💰 Auction Distribution Mechanics

The auction operates with a flexible distribution model:

  • Total Auction Allocation: 500M tokens (50% of total supply)
  • Period Length: Configurable duration for each auction period
  • Number of Periods: Multiple consecutive periods can be configured
  • Distribution Method: Pro-rata based on USDC contributions within each period

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

  2. Use a Solana-compatible wallet

  3. Ensure you have sufficient USDC

  4. Choose Your Contribution Amount

  5. Decide how much USDC to contribute each day

  6. No minimum or maximum limits (beyond practical constraints)

  7. Submit Your Contribution

  8. Send USDC to the auction smart contract

  9. Receive confirmation of your participation

  10. Token Calculation

Your Tokens in an auction period = (Your USDC Contribution / Total collected USDC) × (50% of supply / number of auction periods)
  1. Track Your Allocation
  2. Monitor your expected token allocation
  3. 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

  2. Contributors can claim their tokens

  3. Tokens become available in their wallets

  4. Liquidity Pool Creation

  5. 40% of tokens plus collected USDC seed the initial liquidity pool

  6. Trading parameters are established

  7. Trading Activation

  8. Repository tokens become tradable
  9. 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.