Variable Rate GDAs for Scheduling Token Issuance
Summary
The document explains Variable Rate Gradual Dutch Auctions (VRGDAs), a mechanism for selling tokens or NFTs near a chosen issuance schedule while allowing purchases at any time. Prices rise when sales run ahead of the target and fall when sales lag, extending standard GDAs beyond a uniform linear schedule. It motivates the design with an NFT system that needs rapid initial distribution, a later supply cap for one asset, and ongoing issuance for another.
The method sets a target price, a price decay rate, and a cumulative issuance schedule. It derives pricing from the scheduled sale time of each unit, so a purchase exactly on schedule meets the target price. Examples include linear and square-root schedules, plus a logistic schedule that begins quickly and approaches a finite supply. The paper presents mathematical derivations and an optimized Solidity implementation, but the supplied text has missing equations and parameter values, limiting independent reconstruction. Its examples concern token issuance and NFT projects; they do not provide trading performance evidence or establish suitability for every sale design.
Key ideas
- VRGDAs adjust prices according to how far actual issuance is ahead of or behind a target schedule.
- The mechanism combines a target price, a price decay rate, and a cumulative issuance function.
- A linear schedule recovers the behavior of a standard GDA, while other functions support different issuance patterns.
- A logistic schedule can accelerate early distribution and then approach a finite supply.
- The document supplies implementation examples but no empirical evidence of trading returns.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.