Auction (Dutch, English, dynamic)

Auctions are competitive bidding processes used to determine market price and sell domains. English auctions start with a low price and bidders compete by raising bids until only one remains—common on platforms like eBay. Dutch auctions start with a high price that gradually decreases until someone accepts—ensuring quick sales at market-clearing prices. Dynamic auctions adjust their mechanics based on demand, participation, or other factors. Smart contract-based auctions for tokenized domains can implement any of these models transparently and automatically, enabling fair price discovery while eliminating the need for trusted intermediaries to hold funds or facilitate transfers.