The $BYOB (Be Your Own Bank) token, which is the native token of DataMynt.com’s decentralized finance (DeFi) platform, starts its IDO auction (accepting $USDT) on July 12th, 2021 at 2:00 PM UTC on Gnosis Auction (Link to participate here.
This is the beginning of a 5-part $BYOB community token sale, including 3 DEX auctions with lock-up periods, one public DEX auction with no lock, and one CEX listing with no lock.
There will be 8 billion (8,000,000,000) $BYOB tokens minted fully diluted with a market cap equal to the worldwide population estimated for 2025. It is Data Mynt’s commitment that DeFi services reach 99% of the global population who currently do not have access to DeFi opportunities.
Auction 1 begins on July 12th on Gnosis Auction and will be the most exclusive sale for 1% of the Total Diluted Supply (80 million) 80,000,000 $BYOB tokens with a lock up period. The minimum offer will start at $0.01 USD, which represents a 90% discount over the DEX public auction base price. Auction 1 will be open during the following window:
Auction 1 start date/time: July 12th, 2021, 2:00 PM UTC
Auction 1 end date/time: July 15th, 2021, 2:00 PM UT
Public DEX Sale
For the public DEX auction, we will make 15% of the Total Diluted Supply (1.2 billion) 1,200,000,000 $BYOB tokens available for sale with no lock-up period. These will become immediately available for use by $BYOB token buyers at the conclusion of the process. The minimum offer will start at $0.10 USD.
We will also make 15% of the Total Diluted Supply (1.2 billion) 1,200,000,000 $BYOB tokens available for sale with no lock-up period available on at least one centralized exchange to be announced. List price TBA.
Instructions to participate in $BYOB sales on Gnosis Auction
Any bid to buy $BYOB tokens at or above the minimum price will be collected and stored until the end of the auction 1, 2, 3 or public auction process.
The smart contract ranks the bids in price order and selects the group of bids that together represent the sale of the $BYOB token for the highest price. All bidders pay the lowest price of all qualifying bids. $BYOB token will then be claimed by the winning bidders via a “claimFromParticipantOrder” function that the users must use. (See https://github.com/gnosis/ido-contracts/blob/9cc412416edcbfbf39d40b8daa68b25b188a8746/contracts/EasyAuction.sol#L568 )
For the auctions with locks, the bidder can claim the $BYOB token bought after the lock period elapses. During the lock period, the auction contract will not have transfer capabilities.
For sales or auctions without locks, the bidder will need to submit an additional transaction to claim the $BYOB token bought (or the $BYOB token used to bid with, in case the bid didn’t get filled) when the auction is complete a master contract will be finalized.
When the auction is complete there will be a master contract finalization. The smart contract ranks the bids in price order and selects the group of bids that together represent the sale of the $BYOB token for the highest price. All bidders pay the lowest price of all qualifying bids.
Once the price of an auction has been calculated, everyone part of the unlocked auctions can claim their part of the auction.
For the locked auctions, buyers will be able to withdraw after the lock period for the auction smart contract.
The auctioneer can withdraw the bought funds, the buyers being matched in the auction can withdraw their bought tokens. The buyers bidding with a too low price which were not matched in the auction can withdraw their bidding funds. $BYOB token will then be claimed by the winning bidders via a “claimFromParticipantOrder’ function that the users must use.
The diagram below sets out the approach:
In the diagram above, every orange bids get filled at the price of the lowest accepted bid (Final Price)
- The auctioneer starts by gathering all the bids and sorting them out according to price.
- The auctioneer works back from the highest bid until all the shares are sold.
- The final price that fills the quota of shares to sell becomes the offering price to all successful bidders.
This type of sale is known as a “batch auction” and is extensively used in traditional financial markets as a means of determining a fair price of an asset, for instance during an IPO. All buyers pay the same price, and at least in a rational sense, should be happy whatever the outcome, either they purchase the $BYOB tokens at or below the price they believe ‘fair’, or they do not participate in the sale.
Gnosis Auction User Flow
In Gnosis Auction, there are two types of participants: one seller and multiple bidders (also EOAs or SCs).
1. The seller sets four parameters:
- Sell BYOB token and bid BYOB token
- Amount of BYOB token to sell
- Minimum price willing to accept (ask price)
- Auction duration (preset)
2. Once the auctions start, the bidders start placing bids by setting the following parameters and submitting a transaction:
- Approved BYOB token (if first time)
- Select amount of bid BYOB token willing to commit to the auction
- Select maximum price willing to pay
After submitting the transaction, the bidder’s bid will be valid, and the amount of bid BYOB token that she selected would be subtracted from her balance.
3. Once the auction concludes, the auctioneer submits a transaction that will calculate the closing price. The closing price is calculated using the following method:
3.1. Bids are gathered by the smart contract and sorted from highest to lowest price
3.2. The smart contract works back from the highest bid, adding each bid’s amount of BYOB token to buy until the original amount to sell is reached
3.3. The bid that adds up the amount of BYOB token to sell is selected as the final closing for all participants.
3.4. Participants that selected a maximum price at the final closing price or higher receive a BYOB token, the ones that had selected a maximum price below the closing price are left out.
4. After the price has settled, the auctioneer will receive the proceeds of the auction, and
- For lock period auctions, the bidder can claim the BYOB token bought after the lock period elapses via the auction UI calling claimFromParticipantOrder function. Same steps as if they were claiming at the end of the auction. During the lock period, the auction contract will not have transfer capabilities.
- For non-locked auctions, the bidder will need to submit an additional transaction to claim the BYOB token bought (or the BYOB token used to bid with, in case the bid didn’t get filled).
Why a batch auction?
Gnosis Auction is a platform enabling fair price discovery for token distributions. The aim is to make it easy to discover a fair price for their token through the format of a batch auction.
- The auction will run for a fixed period of time, and all bids will be evaluated.
- There is no first-come-first-serve race, and all participants have an equal chance to acquire tokens, based on their bidding price.
- Any participant can select the price at which they are happy to buy BYOB tokens at any time without time pressure
We have selected this mechanism as it is a fair system to enable community distribution, where an easy interface is provided for price discovery.
Gnosis Auction enables:
a) Token issuers to determine a minimum price they are willing to sell their tokens for (ours starts at $0.01 USD), and
b) Bidders set the maximum price they are willing to pay in the form of limit orders.
The group of highest offering bidders all together will buy 80 million tokens, with all one clearing price, which is the lowest price qualifying bid.
The starting price of Auction 1 is $0.01, and if not all 80 million tokens offered are sold at that price, any unsold tokens will be returned to the Data Mynt ecosystem development fund for future use.
What makes this mechanism fair?
We are committed to the idea of capturing resistance for commerce, so decentralized software can enable communities to work together to secure the outcome that is best for the greatest number of participants.
In this form of token offering across public unlocked and locked auctions, we are asking the community to set the price of the BYOB token, based on the collected desire to own the asset and be part of our ecosystem as it grows.
Our aim is to avoid an exclusionary process, where only a limited number of people can participate, either by a lottery or by first-come-first-serve mechanics.
Instead, we are creating several auctions across different lock periods, discounts for early auction purchases, and a set time period, where anyone can bid to acquire BYOB tokens, at a price that is acceptable to them.
Frequently Asked Questions?
Is there a minimum and maximum bid?
There are no minimum or maximum bids. The minimum bid value is $0.01 USD per token for Auction 1 with a lock period. Any buyer can offer to buy any amount of BYOB tokens for the price they believe to be acceptable.
Why do you believe this sale format is fair?
This sale format enables all participants to purchase BYOB tokens at or below the price they believe to be appropriate. Either they receive tokens at the ‘fair’ price, or they receive their bid back. From a rational standpoint, participants should be equally happy with either outcome.
What price will I pay if I make a bid?
As a bidder, you have to decide on and then input two variables;
- The maximum price that you are prepared to commit to per BYOB token.
- The total amount (in USDT) you wish to commit to for the purchase of BYOB tokens.
You will never pay more than either of these amounts but you may receive a lower token price than your maximum bid. You will pay the lowest qualifying price that anyone pays. All successful bidders in the Gnosis IDO Auctions will pay the same price.
Here are some examples:
Example 1: Perfect Match
1000 tokens are for sale
Bidder 1: $5 total amount and a token maximum bid per token of $0.01
Bidder 2: $3.5 total amount and token maximum bid per token of $0.015
Bidder 3: $1.5 total amount and token maximum bid per token of $0.02
Result: 1000 tokens sold at $0.01.
Bidder 1 gets 500 tokens.
Bidder 2 gets 350 tokens.
Bidder 3 gets 150 tokens.
Example 2: Over Demand
1000 tokens are for sale
Bidder 1: $7.5 total amount and a token maximum bid per token of $0.01
Bidder 2: $15.0 total amount and a token maximum bid per token of $0.015
Bidder 3: $5.0 total amount and a token maximum bid per token of $0.02
Result: 1000 tokens sold at $0.015
Bidder 1 gets 7.5 USDT refunded as the bid was too low
Bidder 2 gets 666.67 tokens and $5
Bidder 3 gets 333.33 tokens
Example 3: Whale Purchase
100,000 tokens are for sale
Bidder 1: $1,000 total amount and a token maximum bid per token of $0.01
Bidder 2: $450 total amount and a token maximum bid per token of $0.015
Bidder 3: $24 total amount and a token maximum bid per token of $0.03
Result: 100,000 tokens sold at $0.01.
Bidder 1 receives 52,600 tokens (and 474 USDT refunded).
Bidder 2 receives 45,000 tokens.
Bidder 3 receives 2,400 tokens.
What happens if I make an unsuccessful bid?
All bids are maintained in the auction contract for the duration of the sale. At the end of the sale, if you have not been successful, your original bid amount can be withdrawn from the auction contract.
How can the auction be manipulated?
The principal means of manipulating the auction is to make very high bids and then cancel them late on in the auction process. The high apparent clearing price will discourage other bidders, then the cancellation will reduce the clearing price, allowing conspirators to secure a lower price than they otherwise would have paid.
This risk is mitigated by the ability to cancel bids being curtailed after a period of time in the auction, and by requiring bidders to commit funds to the auction smart contract before their bid is valid.
Will the auction(s) be dominated by whales?
We believe this approach is more whale-proof than other sale formats, as all bids are transparent. All a bidder needs to do to buy tokens ahead of a whale is to be prepared to pay 0.001 USD more per token than that whale, and their tokens will be assigned to them ahead of the large purchaser.
What are the risks?
With any cryptocurrency-related activity, you should be aware you are dealing with highly volatile assets. Only spend what you can afford to lose. Similarly, there are inherent risks associated with interacting with smart contracts that you should feel comfortable about before participating.
About Gnosis Auction
Gnosis Auction is a protocol that enables anyone to auction off assets with fair pricing. They provide the fairest mechanism to launch assets on ethereum:
Front running resistant: Gnosis Auctions prevent front running bots from extracting value by getting tokens early and then dumping them shortly after at a higher price.
User-friendly bidding experience: In contrast with other mechanisms, Gnosis Auctions enable bidders to bid at their leisure without needing to time their activity in order to get the desired price.
Full control over participation price: One of Gnosis Auction's advantages is the user’s ability to limit the price/valuation at which she is willing to participate. In contrast, IBCO requires the bidder to commit to participation without knowing the eventual price/valuation of participation.
Fair pricing: All bidders will participate with the same uniform clearing price which will be determined when that auction concludes. No one gets the advantage of participating at a lower price compared to other participants.
Step By Step Instructions for participating in the BYOB Token Community Distribution via Gnosis Auction
- First, you need to connect your wallet to the platform. On the top right corner, you can find the button that will allow you to connect your wallet to the Gnosis Auction app.
2. A popup will appear where you will be prompted with a list of available wallets that you can connect to the dapp, then select the wallet type you would like to connect to the Gnosis Auction dapp.
3. After selecting the wallet, in this case, Metamask, a Connect Request will appear. In the case of Metamask, you would need to pick what account (Address) you would like to connect with, and click “Next”.
4. Once you have selected the account you want to use, click “Connect”.
5. After all these steps, you have now successfully connected to the Gnosis Auction dapp. From the UI you will be able to differentiate between two sections. The top section of the UI shows the highlighted Auctions that are taking place, while the bottom section of the UI will show the full list of Auctions that are taking place or have taken place on the platform.
- If you want to participate in one auction that is in the highlighted section, you just have to click anywhere in the box and you will be redirected to the auction.
- If you want to participate in one auction, that is the all auction section, you have to click on the “view” button and you will be redirected to the auction.
6. If you want to participate in an auction, either select one auction from the highlighted auctions section or select one auction from the dropdown list. In this case, you have selected an auction from the highlighted auction section.
Bidding in an Auction
7. After you have decided the auction you want to participate in and clicked on it, you are redirected to the screen below (Keep in mind that the data shown in the below picture will vary for each auction, as all the auctions taking place are independent of each other). The UI can be dissected in two parts, the left side and the right side:
- On the left side, you have data about the ongoing auction, as well as the price graph.
- On the right-hand side, you can see the parameters you need to fill in, to place an order in the auction.
8. In the amount section you would need to input the amount of bidding tokens you are willing to bid in the auction. You can either select the amount you want to bid or directly use the max button to bid all the tokens you have.
9. In the price per bid-token/auction token, the dapp sets by default the price that the auctioneers have set to be the minimum price. From that starting price, you can decide what is the price per bid-token/auction token you are willing to offer.
10. If it is the first time that you have used that token to bid, you will have to approve the contract to spend that token. First, click on the “Approve” button, and then confirm the transaction on Metamask, as shown below.
11. After you have set both the amount of tokens to bid, and the price per bid-token/auction token, you no longer see the enter amount section, instead you see a colored bar with the words “Place Order”. Once you are sure about the parameters you have inputted, you have to click on “place order” to include your bid in the auction.
12. Once you have clicked on “Place Order”, a confirmation popup will appear that will ask you to confirm the order. As you can see in the image below, the dapp confirmation shows the relevant information about your bid order.
13. After you have clicked on “Confirm Order”, your wallet will trigger a popup for confirming the transaction. In this case, the Metamask popup will appear asking you to confirm the execution of the transaction from your wallet interface.
14. Once the Metamask order has been confirmed, and the transaction has been mined into a block, on the right-hand side of the dapp you will see a banner with the price details of your bidding order, and a link to Etherscan so that you can check your transaction details.
Congratulations, you have now learned how to successfully participate as a bidder in a Gnosis Auction.
What is BYOB token and Data Mynt?
See our Whitepaper