Forward Auction Feature
A forward auction is an engaging auction method that allows participants to sell Non-Fungible Tokens (NFTs) to the highest bidder or purchase NFTs from the lowest bidder. This competitive process enables users to participate in trading activities within a specified time frame.
Understanding Forward Auctions:
A forward auction operates on the principle of competitive bidding. In this auction type, the highest bidder at the conclusion of the auction period secures the item being auctioned. Forward auctions are especially beneficial for selling or acquiring NFTs that are not readily available on the Gafi Marketplace.
The Mechanics of a Forward Auction:
Initiating the Auction:
Start Auction: A forward auction commences at a particular block with a set starting price. The auction runs for a predetermined duration, during which participants can place their bids.
Bidding Process: Bidders must submit bids higher than the starting price and any preceding bids. The bid amount signifies the price the bidder is willing to pay for the NFT.
During the Auction:
Bid Irrevocability: Once a bid is placed, it cannot be cancelled or withdrawn, maintaining the integrity of the auction process.
Highest Bid Selection: The highest bid at any given time becomes the currently selected bid. If a higher bid is placed, it replaces the previous highest bid. Lower bids are refunded.
Concluding the Auction:
Auction End: When the predetermined auction period ends, the highest bidder at that moment secures the NFT. The auction result can be executed by anyone.
No Bidders: If the auction ends without any bids, the NFT is returned to its original owner.
Final Thoughts:
Forward auctions offer an efficient platform for engaging in competitive trading within a defined timeframe. However, participants should note that once bids and auctions are placed, they are irrevocable. Therefore, caution and strategic bidding are advised. Forward auctions may be subject to last-minute bids, which can be counteracted by exploring alternative auction types such as Candle Auctions.
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