2. The Bucket Auction
All you need to know about the Price Discovery Public Sale for the Legendary Collection
18-20 April, 2023
Fusion NFT Reward
Disclaimer: This document was last updated on 4/18/23. It reflects the mint process of the Smurfs Society to the best of our knowledge. Please be aware that some dates or details might still be updated in the future. Please make sure to double-check our official communications before any purchase.
The clearing price for the auction was 0.173 ETH! This is the baseline for the mint price for the crystal mint. Crystal holders will be able to mint their crystals for 0.173 ETH, minus their discount.
If you'd like to see the smart contract from the auction on etherscan, click below:
Our community means everything to us, and we’ve decided that instead of setting an arbitrary price for our mint, we want to let our community decide through an auction. Given the specificities of our collection, we’ve decided to go with a fascinating auction mechanism: The Bucket auction introduced by Doodle with their Genesis Box. This gives a large number of community members the option to position themselves, control their level of investment, and react to market conditions in an unrivaled way.
The price discovery Public Sale is a blind sale. Bidders can’t choose which Smurf character they are buying.
- The top 15% of bidders will get a Radiant Fusion NFT
- The next 35% of bidders will get a Platinum Fusion NFT
- The bottom 50% of bidders will get a Gold Fusion NFT
A bucket auction is a type of auction that allows the market to decide on the mint price. This type of auction is growing in popularity in NFT communities, and this page is dedicated to going over the details so you can be better informed when bidding on auction day! We will provide examples on this page and provide you with different scenarios to make it easier to understand.
A bucket auction is a way to set a single price for the whole auction, known as the "clearing price."
- If you bid below the clearing price, you lose.
- If you bid at or above the clearing price, you win.
- If your bid was higher than the clearing price, you'll only pay the clearing price and will be refunded whatever you bid above.
- You will receive as many NFTs as you bid multiples of the clearing price. For example, if your bid is at or greater than 1.5 ETH and the clearing price is 0.5 ETH, you will get 3 NFTs.
- The clearing price is updated in real-time and is visible to everyone.
- You can increase your bid as many times as you want up until the end of the auction, but you cannot decrease it.
The clearing price is calculated by determining the highest price at which all NFTs could be sold at the same price without going past the total supply of NFTs.
For all the Brainy Smurfs out there who want to get technical, the mechanism used to calculate the clearing price in the bucket auction is the "bisection method." This algorithm consists of repeatedly bisecting the interval between values and then selecting the subinterval in which the function changes sign.
Let’s imagine 2 scenarios for an auction with 5 NFTs available and 6 people bidding in the auction.
Amount & Quantity
Bid A gets 2 NFTs and is refunded 0.1 ETH
Bid B gets 2 NFTs
Clearing Price = 0.5 ETH
Bid C gets 1 NFT and is refunded 0.1 ETH