BAM 2 | UNIQUE TOP BID AUCTION
As per Wikipedia, a unique bid auction is a type of strategy game related to traditional auctions where the winner is usually the individual with the lowest (or highest) unique bid. Unique bid auctions are often used as a form of competition and strategy game where bidders pay a fee to make a bid or may have to pay a subscription fee to be able to participate. On BiG DEAL, the bidders will be paying a bid fee to participate.
In practice, such auctions function like lotteries, but the small amount of ‘skill’ involved makes them legal in jurisdictions where lotteries are otherwise illegal.
DEFINITION | A competition to guess and propose the unique top price of a product.
MODEL/TYPE | On-the-house product listing
DOMINANCE | Chance (skill vs. chance)
BiG DEAL revenue:
- Consumption of BiG Tokens to convert to PLAYs
- The final bid price the winner pays
- Sell services | Low
- Sell goods | High
- Sell experiences | Low
- Sell digital assets (NFTs) | Low
INTERBIDDER BID PRICE | Closed
TOKEN ESCROW (WINNER BINDING) | No
AUCTION TIME SENSITIVITY | Till a predefined number of bids are not reached
BOT BIDS POSSIBLE | Yes
MULTIPLE BIDS FROM ONE PARTICIPANT | Yes
BID OPPONENT | The participants
- Only a single winner
- The winner will have the highest and unique proposed/bid price
WIN WIN WIN applicability | High
- House wins | Revenue from the sale of $BiG Tokens to participate
- Winners win | They get the product at the unique + top price they bid
- Non-winners win | A certain percentage of their PLAYs will be carried forward. They don’t lose it all.
Also, we can have the BUY NOW mechanism for all who did not win. This empowers the non-winners to pay the difference amount (variance between the retail price and a portion of the amount spent by them in bids) and claim the product.
The participants must place bids that are:
- Unique bids (unique in value)
- And are highest in value (Top bid)
- That is, for a bid to be eligible to win, no other bidder would have made a bid for the same amount and higher. Bidders can place multiple bids.
EXAMPLE | Product in auction | iPhone
PUBLISHED RETAIL PRICE | $1,000
TOP BID THRESHOLD | $900 (A number which will be published and ideally should be less than the retail price. This is because the winner will pay this amount on winning. It becomes futile if the winner is winning at a $999.99 bid).
AUCTION CLOSING | When a predefined number of bids are placed, a time window is there. If the minimum number of required bids is not reached within the time window, we cancel the auction and refund all PLAYs to all participants. Bidders only see their bid price; they do not see other bids placed. The platform shows the bidder that his bid is highest or not, unique or not, and all combinations.
WINNER | The one whose bid is highest and unique, when the auction closes. We accept bid amounts up to 2 decimal places. The winner pays the winning bid amount to claim the product. In case the winner does not claim the product, he loses his PLAYs.
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