Hot Bread Auction

Last Updated on Jun. 13, 2024

Why do we need new auction methods？

In the bustling world of digital collectibles, creating fair and exciting NFT card packs is no small feat. Imagine a grand marketplace where everyone wants a piece of the treasure, but ensuring fairness is challenging.

First, there's the issue of randomness. Random draws can be manipulated on-chain, allowing tech-savvy individuals to know if they've won before anyone else. Introducing third-party random numbers might seem like a solution, but it opens the door to unfair practices. Developers or third-party providers could exploit their inside knowledge to gain an unfair advantage, making regulation a severe concern.

Then, there's the speed of the blockchain. It's notoriously slow, and web app players often find themselves outpaced by speculators using scripts to snatch up card packs quickly. This leads to frustration and questions about fairness.

Given these challenges, some suggest a straightforward solution: public auctions. The highest bidder wins by auctioning the NFTs on well-known platforms, ensuring transparency and fairness. Though it might seem less exciting than random draws, distributing these coveted digital treasures could be the most equitable way.

The thrill of opening packs is essential in the digital card game world. The development team dismissed direct sales as "not cool," wanting to keep the excitement alive.

To ensure fairness, they introduced the "hot bread auction" rule. Players aim to grab card packs at low prices, but the longer they wait, the higher the chance someone else will snatch them. This dynamic sets a fair price point in everyone's mind.

If a pack isn't grabbed at 0.01 Sol, players can try again at a slightly higher price, like 0.015 Sol. Any attempt by the operations team to hoard rare cards would be noticeable, as the average cost of these packs would be higher. Transparency ensures the team won't risk its reputation for short-term gains.

This method keeps the process exciting and fair, maintaining the joy of discovering rare cards over time.

Metaphor

In a cozy kitchen, friends gathered around a table filled with the aroma of freshly baked bread. Some eagerly reached for the steaming slices, unafraid of the heat, enjoying the thrill despite the slight sting.

Others hesitated, wary of burning their fingers, hoping the bread would cool. But as they waited, their chances dwindled, and they watched the bold ones triumph.

This simple act played out in a quiet drama—the balance of courage and caution, seizing the moment and waiting for the right time. Fortune favored the bold, but patience had its bittersweet rewards.

Auction Process

Imagine a digital marketplace with 200 packs of NFT cards, each containing 5 random cards from a collection of 1000. Some cards are rare and highly sought after.

The protocol calculates each pack's value based on its rare cards, pricing them, for instance, at 1 Solana or equivalent Voidlit Coin. Each pack gets a unique signature on the auction smart contract to ensure authenticity and prevent tampering.

As the auction starts, these 200 packs are displayed like 200 freshly baked bread on a platter, each promising rare treasures for the bold bidders.

Time Impairment

If no one bids, the price drops by 0.1% every second, potentially reaching 0.001 Solana. After each bid, prices reset to the initial cost, making everyone wait again, like cooling hot bread.

This auction can last days, attracting speculators who buy low to resell. The operations team ensures fair, random distribution and sees this as healthy market behavior.

Rare card counts are public, and blockchain data shows pack contents, allowing probability calculations. The front-end page displays these odds.

Speculators profit in the secondary market, while eager players can start immediately. There is no transaction tax on card pack trades, and a dedicated marketplace is provided.

Multiple auctions run simultaneously, ensuring a steady supply and fair gameplay.

Supervision and Audit

Players often wonder, "How do we keep the operations team from profiting unfairly?"

The answer lies in transparency. Every card in the pool and its purchase price is recorded on-chain and visible. If the average auction price of packs containing rare cards is significantly higher than the norm, it becomes evident to everyone. This transparency is a safeguard, allowing all participants to see if the operations team is exploiting any information gaps.

By making all data publicly accessible, the community can supervise the process, ensuring that the operations team remains fair and trustworthy.