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dutch auction
What does dutch auction mean?
A sale mechanism where an NFT's price begins high and decreases at intervals until it's bought or hits a floor, used to price-discover mints and reduce gas wars.
"The Dutch auction started at 3 ETH and I bought when it fell to 1."
Origin
Classic 'Dutch auction' format adopted for NFT drops.
Frequently asked questions
What is a Dutch auction in NFTs?
It's a mint where the price starts high and drops at set intervals until buyers step in or it hits a floor, helping discover a fair price.
Why do NFT projects use Dutch auctions?
They help find a market-clearing price and reduce gas wars, since not everyone rushes to mint at the exact same second.
When should you buy in a Dutch auction?
Waiting lowers the price but risks it selling out or hitting the floor first, so it's a trade-off between a better price and missing out.
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