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:
-
Announcement Phase
- Repository details published
- Auction parameters shared
- Community notification
-
Active Auction (14 Days)
- Daily token distributions of 35.7M tokens
- USDC contributions accepted
- Real-time updates on participation
-
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:
-
Connect Your Wallet
- Use a Solana-compatible wallet
- Ensure you have sufficient USDC
-
Choose Your Contribution Amount
- Decide how much USDC to contribute each day
- No minimum or maximum limits (beyond practical constraints)
-
Submit Your Contribution
- Send USDC to the auction smart contract
- Receive confirmation of your participation
-
Daily Token Calculation
- 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:
-
Token Claiming
- Contributors can claim their tokens
- Tokens become available in their wallets
-
Liquidity Pool Creation
- 40% of tokens plus collected USDC seed the initial liquidity pool
- Trading parameters are established
-
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.