LGO Dutch Auction
Burn LVL to acquire LGO, access the LEVEL DAO
Last updated
Burn LVL to acquire LGO, access the LEVEL DAO
Last updated
Everyone with LVL!
The LGO Dutch Auction uses state-of-the-art theories in mathematics, finance, and economics to devise a formula protecting existing LGO holders from possible dilution caused by the LGO Dutch Auction. The auction serves as a vehicle to create a stronger link between LGO and LVL, boost demand for LVL, and increase the accessibility of LGO and governance as a whole by providing another avenue for acquisition. This mechanism was approved by the LEVEL DAO in the LEVELING UP: 1.5 Upgrade Part Two governance proposal. The anti-dilution paper describing the mechanism can be found below.
20230316 LEVEL_1_5_Antidilution.pdf
Asset at Auction: LGO
Bid Asset: LVL
Duration: 24 hours
Time: Will be announced
A fixed amount of LGO is offered, newly minted from the contract to the community, allowing users to acquire LGO and governance power
The starting price is preset by the protocol for the start of the auction
The floor price is preset by the protocol for the end of the auction (the lowest possible price)
The clearing price decreases linearly every second throughout the auction (24hr) from the start time
With every additional LVL commitment, the live token price increases
Token price = amount raised / token supply
The auction ends successfully when the current token price reaches the clearing price
In case the auction fails to meet the completion criteria, all committed LVL tokens are returned to the participants
After the auction is finalized, all participants are distributed LGO tokens proportional to their contribution to the pool at the last reached price
LGO tokens acquired via the auction are claimable immediately after the auction is finalized
The LVL tokens provided to the auction are burned
If the last bidder enters an LVL amount larger than the available amount for the auction to meet the clearing price then the unused amount will be refunded
