RMRK is excited to announce that it will be adding the Gonnaud-Bessire-McDonaugh (GBM) auction to its Singular NFT marketplace. GBM is a novel auction model that introduces an incentivized bidding system, allowing bidders to receive a financial compensation when they are outbid. In this article, we will explore what GBM auctions are, why they were formulated, how they compare to other auction types, and their benefits.
GBM stands for Gonnaud-Bessire-McDonaugh, the names of the individuals who developed this novel auction model. In a GBM auction, each bidder is financially compensated when they are outbid in real-time during the auction. This incentivized bidding system is unique in the world of auctions and can only be achieved on the blockchain.
GBM auctions were created to make ascending auctions work on the blockchain. Running a traditional open ascending auction (like an English auction) on the blockchain is expensive, and the dominant strategy for bidders is to keep bidding the minimum to stay the highest bidder until it reaches their value of the item, which maximizes the number of bids per auction and thus the costs.
GBM auctions are a time-limited, incentivized open ascending auction. Let’s break that down.
By combining all of these elements, GBM auctions provide a fair, transparent, and exciting way for buyers to bid on NFTs. With GBM auctions, bidders know that they will either win the auction or receive a financial incentive if they are outbid, which provides a more fair and transparent system for everyone involved.
GBM auctions differ from other auction types, such as Dutch auctions or centralised gasless English auctions. In a Dutch auction, the seller sets a high asking price, and the price decreases until one participant accepts the price. In centralised gasless English auctions, the platform takes buy orders, settles the payment at the end of the auction, and then transfers the item to the winner.
GBM auctions are the future of NFT auctions on Singular. By incentivizing bidders to bid higher than the minimum increment, GBM auctions offer a fair, transparent, and efficient auction process. Whether you are a buyer looking for a unique NFT or a seller looking for a fair price, GBM auctions provide a level playing field for everyone.
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With these legos, RMRK enables the creation of the most advanced NFT projects the world has ever seen, while remaining compatible with archaic standards like ERC721 and ERC1155. You can explore this right now on Kanaria, RMRK’s flagship NFT 2.0 project; join the revolution in Skybreach, a truly decentralized metaverse; or trade advanced NFTs on Singular, the advanced NFT marketplace.
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