LGO Dutch Auction

Burn LVL to acquire LGO, access the LEVEL DAO

Who Can Participate?

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

How Does it Work?

  • 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

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