What are they?
Inferno Auctions are weekly distribution events that allow people to bid ETH on fresh RISE tokens. Each Inferno Auction has less RISE available than the last.
These Inferno Auctions run once per week, from Sunday 07:00 AM UTC to Monday 07:00 AM UTC (24 hours), for a total of 124 weeks.
RISE will be distributed to winners using a custom-made algorithm. See below for more information and the source code.
Once an Inferno Auction ends, 100% of auction proceeds are used to buy-back and burn RISE from Uniswap, reducing the supply. In other words, the more money is spent in Inferno Auctions, the more RISE gets burnt!
How Do Inferno Auctions Work?
Unlike most auction designs, Inferno Auctions are engineered to support multiple winners.
Users enter their Max Bid (highest RISE price they’re willing to pay), and their Deposit (how much ETH they’re willing to spend).
The final RISE price starts at 80% of the auction supply value.
It is determined by the total value of all user deposits*, divided by the amount of RISE to be distributed in that auction, capped at 97% of the RISE price on Uniswap (i.e. a 3% discount) at the end of the auction. (* excluding users with a Max Price lower than the Final Price)
Example 1:
Uniswap Price = $1 per RISE
Total Deposits ($45,000) / Auction Supply (50,000 RISE) = Final Auction Price ($0.90 per RISE)
Example 2:
Uniswap Price = $1 per RISE
Total Deposits ($55,000) / Auction Supply (50,000 RISE) = Final Auction Price ($1.10 per RISE)
Market price kicks in so Final Auction Price is $0.97
Can small buyers participate in Inferno Auctions?
Yes, we designed Inferno Auctions with fairness in mind. The amount of RISE one address can get is capped by the number of participants divided by the auction supply.
For example, if there are 100 people bidding and the auction supply is 100 million RISE. That means the maximum amount of RISE any address can get is 1 million RISE.
What if there’s leftover ETH from my bid? Will we be refunded?
Yes, if your deposit exceeds the per-buyer RISE cap, you will be refunded the difference when you claim your RISE.
What if I submitted a wrong bid?
In Inferno Auctions you can submit new bids to overwrite your previous one, meaning you’ll get back your entire deposit if you wish to change it.
For example, if you deposited 1 ETH and want to deposit 1.1 ETH instead — you can submit another bid for 1.1 ETH and you’ll automatically get back your 1 ETH.
If you don’t have an additional 1.1 ETH, you can submit a new small bid (Eg: 0.000000001 ETH) to get the full refund of 1 ETH back.
Can I verify the source code for the Inferno Auction algorithm?
Of course, the code is open source and its link is on the auction contract too.
https://github.com/noodlewatch1234/rise-settle-auction
You can also run this code yourself to verify the correct winners, RISE allocations and ETH refunds.
How much RISE is allocated for Inferno Auctions?
The total allocation is 33.33% Each Inferno Auction has less RISE available than the last, until eventually the entire allocation is distributed after 124 weeks.
What happens after the Inferno Auction?
When an auction concludes, participants must claim their RISE and/or ETH. The contract calculates how much ETH it can burn from each buyer’s deposit once they have claimed.
For example: if 99/100 buyers claim, the 99 claimed deposits can be used for the burn, and remaining deposit will sit there until the owner claims.
