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docs: create auction

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---
title: Auction
description:
published: 1
date: 2024-02-09T04:13:43.915Z
tags:
editor: markdown
dateCreated: 2024-02-09T04:13:43.915Z
---
# Auction
To prevent price sniping, Handshake uses a blind second-price auction called a Vickrey Auction. Users can buy and register top-level domains (TLDs) with Handshake coins (HNS).
In a Vickrey Auction, a participant is only aware of their own bid. The bids are revealed at the end of the auction when a winner is chosen. The winner pays the second highest bid instead of his or her own.
- Names were released weekly during a pre-determined 52 week schedule (until Feb 2021)
- Blind bids can be placed any time after a name is released.
- Bidding is open to everyone for 5 days beforethe reveal period.
- Bidders have 10 days to reveal their bid price.
- A winner is assigned the name and pays the second highest bid at the end of the reveal period.
- The winning bid is burned and permanently removed from circulation.
- Losing bids are returned.
- Names are renewed every 2 years by paying standard network fee.
For more information, read the [Handshake paper](https://hsd-dev.org/files/handshake.txt).
---
![vickrey_auction.jpg](/vickrey_auction.jpg)
Vickrey Auction's scheme and example