How fresh memes are birthed into the meme economy.
In a batch auction, all the buy orders for a meme being sold are executed simultaneously, meaning that each participant gets all their fractions at the same price, but the number of fractions they receive is determined proportionately to their contribution to the sale.
At Dank Bank, we want to make sure fractional ownership of the world’s dankest meme NFTs is accessible and fair. Using batch auctions, we can ensure that both whales and fish can participate with fair distribution of ownership based on everyone’s contributions. Moreover, because all transactions are executed in the same block at the end of the auction, users will be protected from miners front-running transactions, which can distort prices and increase gas fees. Dank Bank works with the collectors and creators of the grandest memes of all time to bring them to you via batch auction.
Once you are on the “auction” page, you’ll be able to see the memes being auctioned. To proceed with buying a fraction of the meme, you will need to:
- 1.Choose how much ETH you would like to commit.
- 2.Connect your wallet and submit the transaction.
- 3.Once the auction has ended, you will be able to claim your fractions of a legendary dank meme or viral video.
To explain this, an example!
Let's say a seller would like to create an “initial meme offering” for meme they own, but they are unsure how the market could price such a valuable cultural artifact. For this reason, they decided to sell the meme through a batch auction on Dank Bank. The seller determines a fixed number of fractions (15) to sell, and initiates an auction.
Alice & Bob both want to buy fractions of the meme but are unsure of its value and have different budgets for this purchase. Alice starts, committing 2 ETH. At this point, this is the total amount raised for the meme, meaning that it represents the value of those 15 fractions. However, Bob still wants to chip in after seeing Alice’s commitment and decides to commit 1 ETH. Now the value of those 15 fractions is 3 ETH.
The auction ends, and Bob & Alice are given shares proportional to their contributions. Accordingly, Alice will get 10 (2/3) fractions, and Bob will get 5 (1/3). At what cost?
Because 3 ETH was contributed for 15 fractions, the cost per fraction is .2 ETH. Even though Alice has more fractions than Bob, the price they pay per fraction is the same.