From c43dbb52d473ff8f8778e071494d4242d215f277 Mon Sep 17 00:00:00 2001 From: Nathan Woodburn Date: Fri, 9 Feb 2024 04:13:49 +0000 Subject: [PATCH] docs: create auction --- auction.md | 39 +++++++++++++++++++++++++++++++++++++++ 1 file changed, 39 insertions(+) create mode 100644 auction.md diff --git a/auction.md b/auction.md new file mode 100644 index 0000000..a7517ec --- /dev/null +++ b/auction.md @@ -0,0 +1,39 @@ +--- +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