The SpankChain Auction is Live: How It Works
We are excited to announce that the SpankChain auction is now live! We are bringing the benefits of blockchain to the adult industry: privacy, security, self-sovereign identity, and economic efficiency. We hope for SpankChain to have a positive lasting impact for models, viewers, and businesses in the space. If you’d like to contribute, the auction will be accepting bids over the next 2 weeks. Below, we share a breakdown of the mechanics, how the auction works, and the possible resulting outcomes.
Inspired by Nick Johnson, we are using an auction model that we believe is fair and will allow for everyone to participate. We hope that this may serve as a secure and fair future model for token sale collections. One of our primary goals with the auction was to make it easy for anyone and everyone to participate. With the Metamask standard, we implemented EIP-712 so users can safely login and bid. To help users participate in our sale, we have put together this video below which will walk you through the process.
If you have any questions, please feel free to reach out on Discord or email us at hello@spankchain.com. If you need help setting up Metamask or navigating the auction, check out the video tutorials on our auction page.
The Mechanics
Here is a breakdown of the mechanics of our auction. Our auction has two main contracts, the token contract and the auction contract.
- The token contract generates the tokens.
- The auction contract runs the on-chain portion of the auction.
Before the start of the auction, 600M of the 1B SPANK tokens from the token contract are transferred to the auction contract based on the configuration parameter that defines the maximum number of tokens for sale. We are using ENS so you can go to My Ether Wallet and type in ‘spankchain.tokenraise.eth’ to verify the auction contract address. For the curious, we have also stored our configuration parameters under the “name” property in ENS.
How It Works: Two Phase Auction
Our auction consists of a “purchase phase” (on-chain) and a “bid processing phase” (off-chain).
Purchase Phase:
During the purchase phase, you deposit ETH which is held by the auction contract. Your ETH deposit is only held during the auction and all remaining deposits not used for a bid will be refunded, minus the gas costs. Your deposit just needs to be stored in the auction contract before you bid. Our team created and open sourced chainsaw, a module that informs our off-chain system of deposits. These off-chain bids are signed following the EIP-712 standard.
Once your deposit is transferred to the contract, you can make as many bids as you want! However, only one bid per address will be processed. You can always deposit more during the purchase phase. You will not be able to bid more than you have deposited.
Bid Processing Phase:
Once the bid processing phase has started, just sit back and wait for us to declare the strike price. Once the strike price has been set, the bids are processed on-chain. Your bid can only be accepted if it is at or above the strike price. The SpankChain team has full discretion over which bids are accepted. Any presale bonuses are applied by the SpankChain team at the time that bids are accepted.
If we fail to set a strike price within the auction time limit, you get your full deposit back.
The Outcomes
The auction will result in 1 of 3 outcomes: successful, cancelled or expired. Naturally, we plan to see the auction through to a successful outcome. However, if for any reason that we decide to cancel the auction, or it expires, you will be able to withdraw your full deposit.
Tokens bind us together and we encourage others to leverage our work. We worked hard to make it easy to use this system again. This is why we have so many parameters. For future projects owners, we hope you use auctions to get clear demand signals for your project. For token purchasers, we hope auctions allow everyone the opportunity to participate in the projects they love. For the entire eco-system, we hope this alleviates network congestion.
Connect with SpankChain
To learn more about SpankChain please visit our website, follow us on Twitter, and join our growing Discord community.
