Interpretation of Kadena's Secondary Auction on CoinList
Editor's Note: This article comes fromBlock Beats BlockBeats, reprinted by Odaily with authorization.
Editor's Note: This article comes from
Block Beats BlockBeats
Block Beats BlockBeats
, reprinted by Odaily with authorization.
Friends who have an account on CoinList recently received such a message: Kadena will conduct a secondary auction. Many people are confused: will Kadena continue to sell KDA, or will KDA be launched soon?
1. What is Kadena Secondary Auction?
2. What are the conditions for participating in the Kadena secondary auction?
3. Where does the KDA used in this secondary auction come from?
4. Review of KDA's token economic model, early investment, public sale and mining costs.
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1. What is the Kadena Secondary Auction?
In simple terms, the Kadena secondary auction is a channel for bulk transactions within the CoinList platform, similar to Push transactions.
Through the Kadena secondary auction, both buyers and sellers can know the price range after the secondary market goes online in advance, so that they can know what they are, and also play a role in buffering liquidity.
The rules of Kadena's secondary auction are also very interesting, which are different from the limit order/market order mechanism of the secondary market. The Kadena secondary auction allows buyers and sellers to freely bid within plus or minus 25% of the previous round of liquidation price and declare the amount of KDA they want to buy or sell.
At the end of the current round of auctions, the system will automatically match a price that will allow all bids to be traded with the maximum volume, and ensure that each buyer will not buy at a higher bid than their own, and ensure that each seller You will not sell at a price lower than your own, but there is no guarantee that all quotations or the quantity you want to buy (sell) will be sold. If the auction turnover of two prices is equal, the price with the smallest overall user balance shall prevail.
Take a simple example. In a certain round of KDA auction, the total purchase volume of all bids on the CoinList platform are: less than $0.98 (100KDA), $0.99 (60KDA), $1 (30KDA), $1.01 (10KDA), greater than $1.02 (none). The total selling volume of all seller quotes are: less than $0.98 (10KDA), $0.99 (30KDA), $1 (30KDA), $1.01 (60KDA), greater than $1.02 (100KDA).
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(BlockBeats Note: In the original image of the CoinList FAQ documentation, the first line "TOP BUY VOLUME" in the third column is an errata, it should be "TOP SELL VOLUME")
If the matching price is $0.98, then 10 KDAs will be traded on the entire platform; if the matching price is $0.99, although 30 KDAs will be traded on the entire platform, the buyer and the seller will have a balance of 30 KDAs. This is because at the price of $0.99, the buyer The order depth is twice the depth of the sell order, and if the matching price is $1, the auction volume will rise to 30 KDA, which is in line with the situation with the largest transaction volume under this assumption, and the balance of participating buyers and sellers is 0.
In fact, in addition to providing token public sales, CoinList has also provided services similar to block transactions, supporting BTC, ETH, and ALGO transactions.
If the buyer just quotes an absolute low price, this may cause the order to fail to be executed. At the same time, if the buyer quotes a relatively low price, since the matching price of each round of auction is always less than or equal to the quotation, it is very difficult for buyers who want to trade in large quantities. Pointless. For sellers, the matching price is always greater than or equal to the quotation, so it is the same.
So, to sum up the mystery of Kadena's secondary auction: the optimal strategy for buyers to bid is to quote the highest price they can accept, and the seller is to quote the lowest price they can accept.
What is the trade-off of this auction?
It can better play the role of price discovery and have sufficient liquidity. Regrettably, this still cannot put an end to overturning, unless CoinList starts to solve it from the aspect of supervision system.
2. What are the conditions for participating in Kadena's secondary auction?
Only non-US residents who meet the KYC conditions can conduct KDA auctions. All users who purchased KDA in the public token sale and choose to receive their allocation on CoinList will be automatically registered for the Kadena auction. There is a limited billing period of 40 days from the end date of the KDA sale, which is scheduled to end on January 15, 2020. During the limited settlement period, KDA may be traded on CoinList, but will not be settled on the Kadena blockchain or any external wallet.
As for the specific auction operation rules, it is beyond the scope of this article. Interested readers can check CoinList’s documentation on Kadena’s secondary auction.
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3. Where does the KDA used in this secondary auction come from?
The KDA shares used in the secondary auction belong to the 10 million tokens of CoinList Non-US, not the shares of the "Future Token Sale". However, the token shares of the SAFT round and CoinList Global have different unlocking schemes.secondary title4. Review of KDA's token economic model, early investment, public sale and mining costs.
