Peanut public sale, here we go!
The Peanut public sale is right around the corner and 6M NUX is waiting to be distributed!
We’ve put all the dates and details of our upcoming public sale in one place:
- Supply: 4M NUX for Dutch auction + 2M NUX for allocation on trading platforms
- Auction Type: Dutch auction
- Start date: 2 February, 3 PM UTC
- End date: 6 February, 3 AM UTC (or earlier)
- Starting price: $2.50
- Last price: $0.35
- Personal min. cap: 0.1 ETH
- Personal max. cap: 50 ETH
- Accepted currency: ETH
- ETH price for the auction: TBA (one hour before the auction start)
- Initial unlock of tokens: up to 20% available at the start, check the details (depending on hard cap level raised)
- Tokens unlock period: 500–700-day unlock period, check the details (depending on the hard cap level raised)
Trading platforms allocation
In order to perform better token allocation, we’ve decided to divide the total amount of tokens for public sale into two parts. The first part of 4M NUX will be distributed according to the Dutch auction model, and the rest 2M NUX will be evenly divided and sold at a fixed price on several other platforms right after the last auction bid.
Besides, we’ve received several proposals from trading platforms to organize initial token offerings. Now we are considering the best offers and negotiating the conditions of NUX allocation. We will announce the platforms’ names once we finalize all the details.
Dutch auction approach
In 2004, Google, now Alphabet Inc., used Dutch auction for the IPO process. They relied on a Dutch auction to minimize underpricing and to earn a fair price on its IPO. Google stated: “Many companies going public have suffered from unreasonable speculation, small initial share float, and stock price volatility that hurt them and their investors in the long run. We believe that our auction-based IPO will minimize these problems, though there is no guarantee that it will.”
The Peanut team totally supports this approach. The main benefit of the Dutch auction is the opportunity to determine a fair price of the asset, based on market demand. During the auction, the price of the token is settled by those who want to buy it, not by the project’s team. They only set a range for the price, but the final word goes to auction participants.
You can find a lot of information about Dutch auctions on Investopedia and similar resources. This is a type of auction in which the price of the asset, the NUX token in our case, is determined after taking in all bids to arrive at the highest price at which the total offering can be sold. There are different types of such auctions with their own features, which are used for different types of assets.
How the Peanut auction works
In our case, the Dutch auction will be hardcoded into a smart contract. The address of the smart contract will be published in our official Telegram group and on the Peanut website an hour prior to the beginning of an auction. Also, there will be a video with the address for additional checks. There will be no Telegram bot, no private rounds, no direct sales — please, be aware of scammers!
In order to participate in the auction, you just need to make a bid by sending ETH to the address of the smart contract. NUX will be available only for ETH. The price of 1 ETH will be set in USD one hour prior to the start of the auction, and it will remain fixed during the whole auction.
The auction starts with the highest price of $2.50 per NUX. During the next 12 hours all the bids are evaluated according to that price. If there are any tokens left after 12 hours, the price of NUX gets lower to $1.83 per NUX. From this point, all the previous bids are automatically re-evaluated according to the new price, and the new bids are accepted until there aren’t any NUX left.
There will be 6 stages of price lowering — every 12 hours. NUX price for different periods of time:
- From 3PM UTC, 02.02.2021, price of 1 NUX — $2,50;
- From 3AM UTC, 03.02.2021, price of 1 NUX — $1,83;
- From 3PM UTC, 03.02.2021, price of 1 NUX — $1,35;
- From 3AM UTC, 04.02.2021, price of 1 NUX — $0,99;
- From 3PM UTC, 04.02.2021, price of 1 NUX — $0,73;
- From 3AM UTC, 05.02.2021, price of 1 NUX — $0,53;
- From 3PM UTC, 05.02.2021, price of 1 NUX — $0,35.
Here you can see the dynamics of the NUX amount from the starting price to the final price. With each step of price descent, a $1000 bid will increase the amount of received NUX. Making a bid at the beginning with $2.5 per NUX will provide the auction participant with almost 1000 NUX more in 2 days with the price of $0.73 per NUX).
NUX tokens will be deposited to the addresses of auction participants right after the auction ends. The auction may end in two cases:
- Run out of time
- Run out of NUX
The auction will end at 3 AM UTC, on February 6, 2021. If there are any unsold NUX tokens left, they will be burned.
NUX may be sold out at the current auction price, or due to re-evaluation of previous bids after price lowering. After re-evaluation, it may be the case that over 6M NUX was sold. In this case, the token will be distributed according to the principle “first come, first served”. Those who made the last bids will get no tokens and they will be automatically refunded with their ETH.
Dutch model illustration
For a better illustration of a Dutch auction, we simulated the scenario in an old-school Excel. For a better understanding, the received amount of ETH will be the same in each stage worth $1M.
According to this model, the final price is $0.99. Those who made their bids during the first three stages will get more tokens than they initially could get. And those who made bids at the starting price will get almost three times more tokens than they planned to get.
Those who decided to buy at the price of $0.99 will get tokens as “first come first served” — after re-evaluation there are only 969,697 tokens left. So, the last 4% of them will fail to get NUX.
Finally, those who decided to wait for the lower price won’t get any tokens at all.
Either make a bid at the beginning and relax, waiting till the end of the auction with guaranteed tokens in the pocket. Or wait for the last price with the risk of not getting any tokens at all. It’s up to auction participants which strategy to choose. So choose wisely!
