> For the complete documentation index, see [llms.txt](https://docs.level.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.level.finance/auctions/lgo-dutch-auction.md).
# LGO Dutch Auction
### **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](https://dao.level.finance/proposals/0xc6e4b5b4b808192171846434574be85887a25b22776c7ececa3c355f5c753f7e) governance proposal. The anti-dilution paper describing the mechanism can be found below.
[20230316 LEVEL\_1\_5\_Antidilution.pdf](https://github.com/level-fi/assets/blob/eb6976b1c2876101b195c7509e4f956702185458/whitepapers/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
### **Rules**
* 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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