Decentralized Auction FAQ

The Decentralized Auction is conducted on the Base blockchain via a smart contract with random blind bidding, ensuring fairness and transparency. There will be a total of 10 auction rounds, with 4,050 NFTs available in each round.

The system will rank participants and bid amounts to confirm NFT pricing, refund non-winning bidders based on ranking orders.

1. Auction Participation:

Each address is limited to two successful auction entries, with a maximum of two NFTs per auction. Fairness is ensured through an open-source algorithm.

1. Auction Starting Price:

The initial auction starts at 70 USDT per NFT, with subsequent auctions' starting prices based on the previous auction's final NFT price.

1. NFT Pricing Mechanism:

The system sets NFT price after each auction based on participant numbers and bid price, ensuring few users receive 2 NFTs.

If 5,000 people participate in the auction, the top 850 bidders will receive 2 NFTs each, and the next 2,350 out of the remaining 4,150 bidders will receive 1 NFT each. If the 3,200th highest bid is 100 USD, then this price will be set as the final NFT price for that round. Any bids below 100 USD or amounts exceeding 100 USD for one NFT or 200 USD for two NFTs will be refunded.

1. How to determine how many people get 2 NFTs in each auction?

   We assume that the number of people participating in the auction in each round is Y, and the proportion of people who obtain 2 NFTs is E(y). Then the proportion of people who get 2 NFTs in each auction can be determined according to the following formula:

E(y)	Y
0.3-(0.1/3950)*(Y-100)	100<=Y<4050
0.2-(0.125/4050)*(Y-4050)	4050<=Y<8100
0.075-(0.055/4050)*(Y-8100)	8100<=Y<12150
0.02-(0.015/12150)*(Y-12150)	12150<=Y<24300
0.005-(0.004/12150)*(Y-24300)	24300<=Y<48600
0.001	48600<=Y

We assume that the number of participants in the current auction Y=4000, and the proportion of people who obtain 2 NFTs according to the formula E(y)=0.2. This means that the number of people who received 2 NFTs in the current period is 800, and the rest received 1 NFT.

1. Results and Claims:

Users can check auction results and claim their NFT blind boxes and refunds in the "My Auction" section on the Auction homepage.

1. RFG Staking Benefits:

Staking Over 1M RFG tokens in Meme Pool will increase the likelihood of winning rare γ NFT in the auction up to 50%.