Auction is the most suitable transaction method for NFT asset circulation. AUCTPOOL – A decentralized platform for various NFT.

www.auctpool.finance

Overview

AUCTPOOL is a decentralized auction platform. Users can independently generate NFT, set up Lot Pool, and participate in various NFT asset auction transactions based on contract operation. Auction is used to make NFT asset trading a wealth appreciation activity that everyone can participate in.

Catalogue

Overview ...... 1 Catalogue ...... 1 Background ...... 3

AUCTION ORIGIN ...... 3

THE EVOLUTIONARY HISTORY OF AUCTION ...... 4

NEW ERA: DECENTRALIZED NFT AUCTION ...... 5 AUCTPOOL Platform ...... 6 Bidding Contract...... 7

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ENGLISH BIDDING CONTRACT...... 8

DUTCH BIDDING CONTRACT ...... 10

SEALED FIRST-PRICE BIDDING CONTRACT ...... 11

VICKERY BIDDING CONTRACT...... 12 NFT Auction ...... 13

FORMATIVE NFT FROM ORIGINAL DIGITAL LOTS ...... 14

TOKEN MODEL OF ENTITY LOTS ...... 14

INCLUSION OF EXTERNAL NFT ...... 15

Lot Pool ...... 16

CHARACTERS IN A LOT POOL ...... 16

SET UP A NEW POOL ...... 17

ADD LOTS TO THE POOL ...... 17

BIDDING PROCESS IN POOL ...... 17

ART POOL ...... 18

POOL MATRIX ...... 19

AUCTION INDEX DERIVATIVES ...... 19 Economic Model ...... 20

DISTRIBUTION OF TOKENS ...... 20

BIDDING MINING ...... 21

EQUITIES OF AUCT HOLDER ...... 24

COMMUNITY INSPIRATION ...... 25

LOCKED POSITION OF TEAM ...... 25

AUCTMAN Community ...... 26

COMMUNITY MEMBERS ...... 26

COMMUNITY GOVERNANCE ...... 28

Schedule Planning...... 31 Reference ...... 32

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Background

The word auction comes from Latin augere and means "increase". That is, to continuously increase the price in a bidding in order to win the auction lots.

Auction Origin

Herodotus, an ancient Greek historian, pointed out in his book that the auction can be traced back to ancient Babylon in the 5th century BC, while the real commercial auction started in ancient Rome. As early as the 2nd century A.D., shops engaged in auction appeared in Rome to auction tapestries, palaces, statues and other commodities.

After the military victory of the Roman Empire, Roman soldiers often inserted spears into the ground and auctioned off the trophies.

Auction in Roman period is the first peak in the development of auction industry in human history. Its characteristics include three aspects:

The range of auction lots is wide, the types of auction are diverse, and the auction activities have laws to abide by, which has constructed the outline, established the mode, created the standard and laid a broad and solid foundation for modern auction.

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The Evolutionary History of Auction

In human history, auction, as an ancient way of transferring property rights, has been continuously developing and evolving: From the 17th to the 18th centuries, revived again in Europe; In November 1660, old ships and scrap ships were auctioned in Britain; In February 1689, there was another auction of paintings and manuscripts; In 1739, real estate was auctioned for the first time; etc. Auction agency began to appear in large numbers. In 1744 and 1766, Sotheby's and Christie's, the world's two largest auction houses, were established in London respectively.

Candle Auction Auction House

In the 17th century, art was auctioned In the 21st century, Sotheby's has been upgraded through by candlelight in some pubs in Auction Site in Britain. Auction houses the internet. In 2019, eBay had Q1 England. Auctions began to revive in are representatives of the auction transactions reaching 22.6 billion US Europe in the 17th to 18th centuries. business for more than 200 years. dollars.

In contemporary society, auction has evolved into a kind of financial activity based on rigorous and complicated economic theories and with extremely wide application scenarios: More complex auction theories and auction methods have been created and applied (William Vickrey, founder of the Rule, won the 1996 Nobel Prize in Economics). The scope of auction business not only covers traditional projects such as antiques, works of art and rare collectibles, but also extends to various fields such as: used cars, large commodities trading and even international carbon .

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The combination with the Internet has made various auction businesses grow by leaps and bounds around the world: The auction business of websites like eBay serves sellers and buyers all over the world every day...

New era: Decentralized NFT Auction

In the era of blockchain, as a financial business with a long history, auction will surely undergo deep evolution again with the help of new technologies, and NFT is an excellent combination of auction and decentralized finance.

NFT and Lot have innate commonness:

Non-Fungible

NFT and lots have Non-Fungible attributes, which are different from each other and cannot be replaced or split (As a lot, bulk commodities as a whole also have Non- Fungible attributes).

Scarcity

Lots and NFT generally have unique characteristics, so they also have certain scarcity.

Price Uncertainty

NFT and lots cannot be priced simply by cost accounting of raw materials and labor costs. The price is uncertain and there is a high premium space.

Therefore, auction is the most suitable transaction way for NFT, and NFT is the inevitable form of lots in the era of blockchain. Based on the blockchain technology, we can generate NFT from an auction lot, calibrate its value with tokens, carry out chain auction quickly, safely and with low consumption.

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AUCTPOOL Platform

AUCTPOOL is a decentralized NFT auction platform based on the Ethernet network. Its composition is as follows:

Bidding Contract: Bidding rules and strategies of various major auction patterns are written into smart contracts to form bidding contracts that can be independently executed or assembled.

NFT Lot: Users can issue an NFT for each lot on AUCTPOOL, and then make a deal on the platform.

Lot Pool: The platform cooperates with individuals and institutions that provide NFT lots to form lot pool that execute specific bidding contracts and conduct NFT transactions of specific categories.

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Bidding Contract

Auction has a deeper meaning in economics. Its theoretical basis comes from the core ideas of information economics and game theory, which holds that auction itself is a game process. The auction method, auction strategy and bidding efficiency can be simulated and evaluated by mathematical modeling, and the auction process can be dominated efficiently.

AUCTPOOL forms a series of bidding contracts dedicated to auctions by writing auction rules into smart contracts. For the main types of auction modes, the main bidding contracts developed in advance include:

Ÿ English Bidding Contract

Ÿ Dutch Bidding Contract

Ÿ Sealed First-price（FPSB）Bidding Contract

Ÿ Vickrey Bidding Contract

Bidding contracts can be compatible with emerging online auction rules and various hybrid auction rules.

All kinds of NFT lot pool established on the AUCTPOOL platform can select appropriate bidding contracts ， or combinations of various bidding contracts as needed to be applied to the auction.

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English Bidding Contract

In the process of , the auctioneer announces the starting price and increase rate of the auction target. Bidders continuously raises the bid price during the auction process from low to high, until there is only one bidder left, and the highest bidder wins.

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Assuming that a lot is only bid by bidders 1 and 2 in an English auction. The seller and

i bidder j (j = 1, 2) know that the bidder i's valuation of the item is v l , the probability is

i i i i i p or v h and the probability is 1-p （i = 2,1), assuming 0< v l < v h ，i = 1,2. It is further assumed that the valuation of the project is independent among bidders (This corresponds to assumption A2, independence - private value). Similarly, assuming that

1 2 1 2 1 2 v l=v l=:vl, v h=v h=:vh and p =p =:p (This corresponds to assumption A3, symmetry information). The payment function i (= 1, 2) for the bidder, is 0. If he/she has never exceeded bidder j (= 2, 1), or v l - (i bid ), or v h - (i bid ), it depends on his/her valuation of the commodity, if he/she bids the bidder j (= 2, 1). Obviously, in this case, the revenue function is only a function of the bid and true assumption A4. In this case, the bidder will not bid for his own valuation, and the winner of the auction is the bidder with the highest valuation, who will bid first. The price he/she will pay for the project is equal to the valuation of the other bidder, which is equal to the lowest quotation.

Logic diagram of online auction application of English auction rules:

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Dutch Bidding Contract

The basic rule of is price reduction auction. In the auction process, the auctioneer announces the starting price and reduction range of the auction target, and makes bids in turn, with the first bidder closing the deal.

The main difference between the Dutch auction and the English auction is that the balance in the auction of Dutch auction depends a large extent on the bidder's guess on other decision-making rules, while in the English auction, the bidder's strategy does not depend on the bidder's strategy.

Bayesian Nash equilibrium Assuming that there are ñ bidders having valuation v1，...，vñ in the auction. Bidders believe that i's valuation of other bidders is independent, and vi and they are the same as all bidders. Let's use v -i to represent the set of all possible valuation combinations for all bidders except bidder i. A Bayesian Nash

* Equilibrium is a set of strategies（S*1，...，S*ñ), and the average of strategy s i(vi) is

* the best response. In other words, s i(vi) solves the maximization problem (see figure).

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∗ max (payoff if � is offered and rivals play � ( �)�� (rivals valuations are �) : ∈

In the Bayesian Nash equilibrium of the auction, considering the decision rules followed by competitors (correct guess in the equilibrium), each bidder will choose the best bid.

Sealed First-price（FPSB）Bidding Contract

Under the sealed first-price bidding rule, many buyers bid for the auction items in the form of written bids, and all bidders submit sealed bids at the same time, so no one knows the bids of others. The highest bidder shall make a deal according to his highest bid. Unlike English auctions, bidders have never seen a competitor's bid and can only submit one bid.

Assuming that there are only two bidders in a sealed first-price bidding auction, the mark is i = 1, 2. The estimates v1, v2 of the two bidders are independent and evenly distributed on [0, 1]. In this case, the submission vi/2 for each participant i is Bayesian

Nash equilibrium. For example, v1/2 maximum quantity（v1 - b1）Pr（b1 >v2/2), on all possible bids b1. If Player 2 has the same bidding rules, the last expression is Player 1's expected revenue. From the definition of uniform distribution, this amount is equal to（v1 - b1）2B1, for b1 ≤1 , and（v1 - b1） is b1>1.

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Vickery Bidding Contract

Vickery auction is also called the sealed second-price auction. Its auction rules are basically the same as the sealed first-price auction, except that the price that the winner has to pay is the second highest quotation, not his own quotation.

The bidder submitted a sealed bid knowing that the highest bidder had won the bid, but the price paid was not equal to his/her own bid, but the second highest bid (If there is a draw among m bidders, so random number is 1, and then m is selected to determine the winner).

Vickery auction rules are widely used in the field of online auction. eBay's online auction system and Google and Yahoo's online advertising (bid auction) programs are all modified forms using Vickery auction rules.

Logic diagram of online auction application of Vickery auction rules:

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NFT Lot

Auction is the most suitable transaction method for NFT asset circulation.

In AUCTPOOL, owners and providers of various lots can upload the lots to the system, then generate NFT with one-click and auction them on the platform. There are three major sources of NFT auctioned on AUCTPOOL: Formative NFT from original digital lots, token model of entity lots, and inclusion of external NFT.

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Formative NFT from Original Digital Lots

All kinds of digital items native to the Internet and completely based on codes, such as crypto artwork, game equipment, copyright of online works, etc. They are endowed with value and can be exchanged as commodities on the Internet. Among them, digital items with small quantity, high scarcity and large premium space are very suitable for auction.

AUCTPOOL allows providers to upload auction lots, generate an ERC-721 standard NFT for each auction lot, and then allocate appropriate bidding contracts for auction according to the category, bidding price and history of the auction lots. For example, the first digital artwork of a well-known artist is auctioned for the first time, and the

English auction contract is applicable；While for a pair of electronic socks, Vickery's auction contract is more suitable.

AUCTPOOL can easily convert native digital items from various sources into NFT, and then incorporate them into the lot sequence of the platform.

Tokenization of Entity Lots

AUCTPOOL will also support token model of physical lots. The provider saves the authentication certificate, purchase contract, patent information, copyright information, etc. of the lot on the blockchain, and generates ERC-721 standard NFT for it, which serves as the unique identification of the lot on the block-chain, thus realizing Tokenization of the entity lot assets. Once this NFT is generated, it can participate in the auction of corresponding categories on the AUCTPOOL platform. Token model of physical lots generally need to be realized with the assistance of intelligent hardware (such as RFID, NFC, etc.).

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Inclusion of External NFT

Through cross-chain technology, AUCTPOOL can also realize compatibility with various NFT assets issued in other public chain and DeFi projects, bring various NFT into AUCTPOOL auction, and cooperate with various NFT projects:

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Lot Pool

Lot Pool is a self-contained business execution unit in AUCTPOOL. The Lot Pool includes a specific category of NFT, with the participation of all parties involved in the auction, and a specific bidding contract is used for auction. AUCTPOOL platform carries out decentralized auction business and cooperates with many lot providers, all of which exist in the form of a series of "POOL" with independent front-end and unified back-end.

Characters in a Lot Pool

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Set Up a New POOL

Auction institutions and individuals with sufficient qualifications, lots and funds can jointly create an exclusive Lot Pool with specific auction themes with AUCTPOOL, and then carry out decentralized NFT auction business on the platform.

The founder needs to put enough NFT lots into the lot pool and provide initial information of the lots;

The AUCTPOOL platform and the founder jointly set auction rules for the lots pool (selecting and combining in the bidding contracts provided by the AUCTPOOL platform), and the rules can be automatically executed once determined;

After the lot pool starts to operate, the transaction fee shall be divided between the founder and AUCTPOOL platform according to the agreed proportion.

Add Lots to the POOL

In addition to its own NFT lots, the Lot Pool also allows other lots of the same category and theme to be added. Any user can submit the appropriate NFT lots in his hand to the Lot Pool for auction. After being approved by the verifier, they can be auctioned in POOL.

Bidding Process in POOL

The Lot Pool sets a specific time period for each auction, and USDT is used for trading during the auction.

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At the end of the bidding time, the winner (buyer) of the bidding pays USDT to the seller, the platform charges a certain proportion of the transaction fee to the seller, and at the same time gives the buyer AUCT as a mining incentive of the bidding.

The lots can be re-auctioned after the time interval is at least 24 hours, and the starting price is reset based on the reference to the final auction bid of the previous round; The owner of the lot can also choose to deliver the NFT lot he has taken, so the auction transaction information and owner information are written into the block for inquiry at any time. The delivered lots are in a non-tradable state before being auctioned again.

ART POOL

Art is a major auction item, while crypto artwork is an important type of NFT. Therefore, AUCTPOOL is working with partners to develop an ART POOL targeted at crypto artworks. It will first start soliciting NFT items worldwide and open auction transactions to users.

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After a period of operation, ART POOL will further interface with world-renowned artists and art institutions, and gradually convert offline entity artwork into NFT, which will be included in ART POOL's lots sequence.

POOL Matrix

Other NFT lot pools, such as game equipment pools and electronic copyright pools, will also be built simultaneously. With the gradual establishment of different types, different auction themes, different rules and different regions of lot pools on the AUCTPOOL platform, an increasingly powerful lot pool matrix will be formed. In other words, it is a "global decentralized NFT auction collection". Any traditional auction organization is by no means comparable to this matrix`s business scale, capital volume and population coverage at present.

Auction Index Derivatives

AUCTPOOL will use Oracle services such as ChainLink to track the auction indexes and the prices of mainstream auction assets, so as to keep the reference data of various categories of auction lots in the system. Compared with the traditional offline auction, AUCTPOOL decentralized auction has a large number of participants, a richer variety of lots, and a larger scale of transaction data. After the transaction reaches a certain scale, the transaction price of the lot will gradually squeeze the price space in the traditional auction and become the price setter of the auction transaction price. After mastering sufficient and accurate auction index data, AUCTPOOL's decentralized bidding network can further support auction derivatives businesses such as auction index futures contract trading, attracting experienced auction traders with higher risk preferences to participate.

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Economic Model

AUCT is the official token of AUCTPOOL, with a circulation of 100 million pieces and no additional issuance. AUCT is used in AUCTPOOL system to calibrate value and measure contribution, as an incentive for users to participate in auction and community incentives, and as a proof of rights and interests for users' community voting rights and lots ownership.

NFT from various sources and types are the bidding targets in AUCTPOOL, and users get premium income from bidding NFT.

Distribution of Tokens

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In the AUCTPOOL economic model, AUCT tokens, NFT assets, currency holders, auction houses and lot pools are the components of the system, of which currency holders' income comes from two aspects: 1) AUCT bidding mining incentive, as well as appreciation and interests; 2) Premium from NFT asset bidding transaction.

Bidding Mining

65% of AUCT’s total tokens are outputted from the daily bidding mining, and the output decreases year by year.

In the first year, 10 million AUCTs were generated by mining, and then the output decreased by 12.5% per year. It is estimated that the annual output will be halved in the sixth year. Relevant estimated data are as follows:

Total annual production Average daily output Tokens waiting Year of tokens of tokens to be produced 1st 10,000,000 27,397.26 55,000,000 2nd 8,750,000 23,972.60 46,250,000 3rd 7,656,250 20,976.03 38,593,750 4th 6,699,219 18,354.02 31,894,531 5th 5,861,816 16,059.77 26,032,715 6th 5,129,089 14,052.30 20,903,625

The platform sets a user bidding participation coefficient N, which means: The number of people participating in bidding transactions every day (users participate in bidding, buy or sell NFT at least once) accounts for the proportion of the total number of currency holders on that day.

When N is more than or equal to 60%, all 100% AUCT tokens produced on that day are distributed to users participating in the auction;

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When N is less than 60%, the proportion value calculated by（N/60%）*100% is multiplied by the amount of tokens produced on that day to obtain the amount of AUCT that should be distributed to all bidding participants on that day. The remaining tokens is used by the team for operational use.

Auction Transaction

In AUCTPOOL system, users participate in NFT auction transactions as bidders, and their identities constantly switch among sellers, buyers and asset holders (or have several identities at the same time).

The user can set the starting price P0 by himself before the auction, and the upper limit of the percentage increment ΔP of the starting price is 50 percent.

In the process of bidding, the single bid increase range is M for bidders to up for auction, while the total bid increase range of an auction is MTotal (For the lot pool M of different categories and bidding rules, the MTOTAL value will be set differently. When the total bid increase reaches or exceeds MTOTAL, the auction will stop immediately, and the system will award the lot to the earliest bidder with the highest bid in chronological order.

Premium Benefit of Seller

In the NFT bidding transaction, the seller's income comes from the premium generated by NFT assets during the bidding process.

The bidding process uses USDT for trading. At the end of each round of bidding, the winner (buyer) of the bidding pays USDT to the seller. Excluding the transaction fee charged by the platform with a proportion of T (The T value has different settings for different categories and auction rules of the lot pool), the USDT proceeds generated from the auction appreciation shall be owned by the seller. Assuming that the bid price of a certain lot of user X is P2 in this round and P1 in the last round, then:

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���� = (� − �) ∗ (1 − �)

The auction lots can be re-auctioned after the time interval is at least 24 hours.

In AUCTPOOL, users need to staking at least 500 AUCTs to be eligible to sell NFT as sellers. Therefore, if the number of AUCT staking in users' hands is insufficient, but they have NFT assets need to be sold, they need to purchase AUCT at the exchange or take out loans from other AUCT token holders through staking USDT to reach the lower limit of 500 tokens staking. After the auction, the user shall return the borrowed AUCT together with the daily interest rate of 1% to the lender.

Mining Stimulation of Buyer

The buyer's income comes from the AUCT mining stimulation generated in the auction transaction, and the quantity is related to the transaction volume and the total transaction volume of the platform participating in the auction transaction on that day.

Assuming that on the AUCTPOOL platform, the total amount of tokens generated by bidding for mining on a certain day is AUCT, the bidding transaction amount of user X on a certain day is Vx, and the total transaction amount of the platform on that day is V, then user X obtains token stimulation amount for mining on that day is:

���� = � ∗ ���� ∗ （�/�）

Rx is partition coefficient, which is related to the amount of AUCT staking by the user:

When the staking amount is less than 500, Rx = 30%; That is, users receive 30% of the incentives and 70% are used by the team for development and operation; When the staking amount is more than or equal to 500 and is less than 1000, Rx = 60%;

When the staking amount is more than or equal to 1000, Rx = 100%.

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Equities of AUCT holder

Participation qualification of auction

At the beginning of AUCTPOOL, NFT lots were few in quantity and high in scarcity, with huge appreciation space. If all users are allowed to participate in the bidding without any threshold, users who really have strong willing and sufficient strength to bid for NFT may not be able to compete with some "malicious bidders." If this kind of situation continues for a long time, it will hurt the participation enthusiasm of these high-quality users and will also cause abnormal auction pass. Therefore, AUCTPOOL ranks the number of AUCT staking by all token holders every day, and the top 50% of users are eligible to participate in the auction on that day. In addition, the platform has also set a minimum amount of 100 AUCTs for the number of AUCT staking of users participating in the auction. Accounts below this amount cannot participate in the auction.

Short-term Loan

In AUCTPOOL, if users want to participate in NFT bidding, or to receive revenue during the auction process as sellers or buyers, they firstly need to have enough AUCT staking amount. So, there is a lot of demand for AUCT short-term lending.

The holders of AUCT tokens can lend AUCT to someone who is badly in need of tokens, and the interest on borrowings is 1% per day; The borrower need to staking excess USDT in order to lend AUCT, return AUCT and interest after use, and get back USDT.

Interest Generation by Pledging

All AUCT staking on the platform can generate interest with an APY of 7.5 percent.

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NFT New Product for Free

Every weekend, AUCTPOOL will start a specific auction to put in a certain number of new NFT lots, and the start price of all the lots is zero. The top 10 percent users whose AUCT staking amount are qualified to participate this auction. The winning bidder will be determined in order of the time of the bidding, and they can get these NFT lots for free.

Voting Right and Participation in Community Governance

All the holders of AUCT tokens have right to vote in community, and top 50 holders with AUCT staking amount can join the community governance committee to participate in community governance. (See the chapter on community governance for details)

Community Inspiration

AUCTPOOL reserved 25% AUCT tokens are all used to conduct community inspiration and airdrops, build and improve the community ecology continuously. AUCT tokens corresponding to community inspiration are locked into an open smart contract, and is subject to the supervision of all AUCTPOOL users. Any user can view the quantity and usage at any time. However, all operations referring to using this part of AUCT tokens need to give notice in advance in the community and make a description of the usage.

Locked Position of Team

10 percent of AUCT held by the team is used to develop and operate project and support business development. The AUCT held by the team is set to lock the position and release linearly within 36 months.

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AUCTMAN Community

AUCTMAN Community comes from the nickname of community members: Auctman. This name accurately outlines the common characteristics of community members: All of them are the holders of AUCT tokens, and the auction men who participate in bidding trading every day. They have a consensus - they firmly believe that in AUCTPOOL, a popular NFT+DeFi project fulling of hope and broad development space, everyone will have Ultraman's superpower through hard work and gain more and more benefits through constant Bidding.

Different from the usual blockchain project community, AUCTMAN Community is built on bidding trading occurring in decentralized NFT exchange in real time every day. Community users are not only the holders of AUCT, but also the actual operators of a series of auction transactions, such as bidding, rebidding, delivery and so on. So the topic of AUCTMAN every day is no longer just the rise and fall of the token price or how much money was made today. They are more focused on discovering the potential value of NFT assets, increasing their experience and skills in auction transactions in practice, promoting their in-depth understanding and comprehension of value constantly, and truly mastering the way of wealth growth in the blockchain era.

Community Members

Token Holders

All the holders of AUCT tokens are community members.

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Most of them participate in NFT bidding, which are the main force of community members, and the main part of AUCTMAN. For community affairs, token holders can call for a referendum through staking a certain amount AUCT in their hand, and vote.

Governance Committee

The senior AUCTMANs act as the governance committee whose AUCT staking amount is the top 50 monthly in the governance council built by AUCTMAN Community. They are the implementer and executor of the daily governance of the community. One of the core responsibilities of the governance committee is to organize training for community members, and convey timely and fully the training content of bidding transaction rules, participation methods, NFT asset value analysis, AUCT stimulation acquisition, and so on to each member.

Node

The nodes is created among senior holders through bidding campaign，they have a series of responsibilities and rights to participate in platform co-governance, community governance, lot pool creation and examine, etc.

Participate in the platform co-governance

Nodes have the right to participate in the business decision-making, team decision- making, voting and election of the AUCTPOOL platform, and have priority to enjoying the development dividend of the AUCTPOOL platform, so as to realize revenue sharing and achieve win-win governance.

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Community governance

Nodes have the responsibility to expand community resources, participate in AUCTMAN community construction, and maintain the basic order of the community. For community affairs, nodes can initiate and organize voting.

The creation and examine of lot pool

Nodes are responsible for examining the creation of the lot pool. They are required to assist the platform in screening and reviewing the qualification materials, certification information, pricing basis, etc. of the lots to determine whether the lot pool can be started for business. In order to perform this duty competently, some nodes in the community need to be held by personnel with relevant qualifications and professional knowledge.

Operator

The platform side and the members of the operation team of the lot pool provide the bottom-level services and operation management to support the operation of the community. As the creator and business operation manager of each lot pool on the platform, the operator needs to maintain the normal bidding order of the lot pool, continuously improve the operation speed and stability of the system, and ensure the reliable and sustainable operation of decentralized NFT auction activities.

Community Governance

Each community member can initiate a referendum proposal, and the nodes can initiate a non-referendum proposal to vote on various community affairs. Initiation of all types of proposals requires to staking a sufficient number of AUCT tokens and pay Gas fees by oneself.

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Voting Process

Holders staking AUCT to participate in various voting in the community. The voting weight depends not only on the number of staking tokens, but also on the length of the voting lock-in period selected by the holders.

Voting Result Count

There are three dimensions for calculating the results of referendum proposals:

Nodes support rate：The ratio of the number of nodes voted for to the number of nodes participating in voting；

AUCT support rate：The ratio of the number of AUCT voting votes to the total number of AUCT voting votes;

AUCT participation rate：The ratio of the total number of AUCT participating in the voting to the total number of staking AUCT.

Assuming that the minimum values of the above three items are respectively P%, Q% and K%, then it must be simultaneously satisfied: when the nodes support rate is more than P%, AUCT support rate is more than Q% and the AUCT participation rate is more than K%, the proposal is passed by voting, otherwise the vote is not passed.

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There are two dimensions for calculating the results of non-referendum proposals:

Nodes support rate：The ratio of the number of nodes voted for to the number of nodes participating in voting;

Nodes participation rate：The ratio of the number of the nodes participating in voting to the total number of nodes.

Assuming that the minimum values of the above two items are respectively M% and N%, then it must be simultaneously satisfied: when the nodes support rate is more than M%, the nodes participation rate is more than N%, the proposal is passed by voting, otherwise the vote is not passed.

Node Auction Campaign

In AUCTMAN community, every senior token holder can become node through participating in auction campaign.

Node auction election adopts a fast bidding contract based on Anglo-Dutch mixed auction rules. That is, the platform side will give the starting bid price with AUCT bid price, and the candidate first increase the bid price to the highest price where no one will continue to add the price, and determine the first node; Then the price is lowered by one level in the opposite direction, and the candidate vies for the bidding. At this time, multiple people are allowed to make a deal at the same price. If all the places are grabbed at this time, the auction will end immediately. If there is still a surplus but no one continues to bid, the price will be lowered by another level to continue the auction until all the places are auctioned, or the auction price will be lowered to the starting price, and the auction will end. If there are places left, the total number of nodes can be temporarily vacant and will be replenished when bidding again.

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Schedule Planning

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Reference

[1] Klemperer, P. 1999. : A Literature Guide. Economic Investigation

Magazine

[2] Krishna, Vijay (2002), Auction Theory, San Diego, United States: Academic Press,ISBN 978-0-12-426297-3

[3] Paul Milgrom(Milgrom，Paul, 2004), ``The Auction TheoryPut into Practice, Cambridge, UK

[4] Vickrey, William S. (1961). "Anti-speculation, auctions and competitive sealed / bidding."Journal of Finance

[5] "The Heyday of Auctions", The Economist, 352(8129):67-68，1999-07-24，ISSN

0013-0613

[6] Doyle, Robert A.; Baska Steve (Steve, November 2002),"Auction History: High-tech Auctions from Ancient Rome to Today" /

[7] Create your own CRYPTO-CURRENCY with Ethereum https://ethereum.org/en/developers/

[8] Decentralized Finance Explained (Yos Riady) https://yos.io/2019/12/08/decentralized-finance-explained/

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AUCTPOOL WHITER PAPER 32