LGO Dutch Auction
Burn LVL to acquire LGO, and gain access to the LEVEL DAO
The LGO Dutch Auction uses state-of-the-art theories in science, 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.
- Asset at Auction: LGO
- Bid Asset: LVL
- Duration: 24 hours
- Time: Every Tuesday at 2 pm UTC
- 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
Everyone!
Last modified 21d ago