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DP #91 - Auction0x
Name: Auction0x District
Purpose: Can be used for any type of District that needs an Auction operation.
Description: Auction Districts that can be linked to other Districts, they need to work with Escrows (Escargot Proposal DP#67 for example) or have one of its own. This will be very useful for Districts that needs Bids or Tenders for their operations exactly the same ways as Public Institutions does. This will create transparency in purchases made by districts and help the overall governance.
Purpose: It can be added to Districts as modules or into the whole platform to bid between districts if Communities put something to bid on between them.
Types of Auction
English auction Also known as an open ascending price auction. This type of auction is arguably the most common form of auction in use today. Participants bid openly against one another, with each subsequent bid required to be higher than the previous bid. An auctioneer may announce prices, bidders may call out their bids themselves (or have a proxy call out a bid on their behalf), or bids may be submitted electronically with the highest current bid publicly displayed. The auction ends when no participant is willing to bid further, at which point the highest bidder pays their bid. Alternatively, if the seller has set a minimum sale price in advance (the 'reserve' price) and the final bid does not reach that price the item remains unsold. Sometimes the auctioneer sets a minimum amount by which the next bid must exceed the current highest bid. The most significant distinguishing factor of this auction type is that the current highest bid is always available to potential bidders.
Dutch auction Also known as an open descending price auction. In the traditional Dutch auction the auctioneer begins with a high asking price for some quantity of like items; the price is lowered until a participant is willing to accept the auctioneer's price for some quantity of the goods in the lot or until the seller's reserve price is met. If the first bidder does not purchase the entire lot, the auctioneer continues lowering the price until all of the items have been bid for or the reserve price is reached. Items are allocated based on bid order; the highest bidder selects their item(s) first followed by the second highest bidder, etc. In a modification, all of the winning participants pay only the last announced price for the items that they bid on. Sealed first-price auction or blind auction Also known as a first-price sealed-bid auction (FPSB). In this type of auction all bidders simultaneously submit sealed bids so that no bidder knows the bid of any other participant. The highest bidder pays the price they submitted. This type of auction is distinct from the English auction, in that bidders can only submit one bid each. Furthermore, as bidders cannot see the bids of other participants they cannot adjust their own bids accordingly.
Vickrey auction Also known as a sealed-bid second-price auction. This is identical to the sealed first-price auction except that the winning bidder pays the second-highest bid rather than his or her own.
All Pay Auction is an auction in which all bidders must pay their bids regardless of whether they win. The highest bidder wins the item.
Reverse Auction is a type of auction in which the roles of the buyer and the seller are reversed, with the primary objective to drive purchase prices downward.[38] While ordinary auctions provide suppliers the opportunity to find the best price among interested buyers, reverse auctions give buyers a chance to find the lowest-price supplier. During a reverse auction, suppliers may submit multiple offers, usually as a response to competing suppliers’ offers, bidding down the price of a good or service to the lowest price they are willing to receive. By revealing the competing bids in real time to every participating supplier, reverse auctions promote “information transparency”. This, coupled with the dynamic bidding process, improves the chances of reaching the fair market value of the item.
As a last note , left to think if this kind of auctions can be used too as governance model, similar to proof of stake, which a decision can be reached at a cost of something.
Great proposal! Any thoughts on issue #60 and how this will differ or overlap?
Also, please DM me @alexander in slack when you get the chance to chat about this.
@Alexand0x , According to what is written in #60 , that is set to work with Products , maybe services too. Auction0x , differs that besides that, it can be taken as "layer 2" module or district to connect 2 or more Districts that can bid on something (products, service, decisions, smart contracts executions, whatever).
Lets say that District0x put under evaluation a decision or "something" regarding a common subject that may impact several communities, but some of them are prone to take a decision that has a hidden agenda, maybe for his own well (valid option) or maybe because they want something "bad" to happen to another district (also valid option, perhaps less ethical) as the outcome of said decision. So if we want to set an entry barrier for this, we can use Auction0x to put to bid this "thing". This way the "group/district decision attack" (fancy name :P) will have financial implications for those districts bidding on it, and then the affected district for that bidded action/thing can set a financial threshold for that to happen. Auction0x can be seen as 1st instance of group/districts decision/bid without needing to go to an Aragon court. Obviously it can be also use for trivial things too, as I said, products or services, but the true potential can be achieved in what was previously described. This is in line with some of the articles that were posted on district0x blog like https://blog.district0x.io/ensuring-transparency-at-district0x-5899076106b4
kind regards,
Hey @Marianodp
I'm not sure if you're aware but we recently launched a new bounty to migrate your proposals to the actual District Registry: https://registry.district0x.io/
We're replacing the old voting app with the registry. Let me know if you need help but I would love to see you migrate this over so you can claim your DNT.
It does take a 10,000 DNT submit to submit your proposal but this gives you an extra 2000 you can stake in the registry beyond the deposit amount.
Hit me up on Telegram or Discord if you need help or have questions.
Telegram: https://t.me/district0x/75217 Discord: https://discord.gg/P9RQejv
PS, please excuse the canned response. I am encouraging everyone here to start migrating so they can claim their 12000 DNT.
