Community Genesis Auction

deScier intends to launch in a fully fair and transparent manner, favoring community participation over centralized entities. As a first step, deScier will enable any interested member of the public to contribute to its genesis period using a Gnosis Auction mechanism.

Gnosis Auction uses batch auctions which are an economic design mechanism for ensuring fair price discovery. Batch auctions enable matching limit orders of buyers and sellers with the same clearing price for all participants. From web3 use cases like Initial DEX Offerings (like those on the Mesa interface for Gnosis Protocol v1) to traditional commercial and financial auctions (like Google’s IPO and the NYSE Open Auction), batch auctions play an important role in the democratization of the auctioned assets. This function is especially important for decentralized entities, which need to ensure fair token distributions while operating trustlessly and efficiently. In practice, auctioneers determine a minimum price for which they are willing to sell a fixed number of tokens. Bidders set the maximum price they are willing to pay for a fixed contribution. These characteristics allow the platform to create a fair pricing dynamic in which both participants get either what they were willing to receive or more.

deScier’s initial genesis will operate as follows:

1. deScier will allocate 8% of its fixed token supply into a Gnosis Auction with the goal to raise sufficient funds to finance and enable the DAO to cover operational expenses and running costs. The community will decide on the full fundraising budget and structure pending simulations and crypto-economic modeling using cadCAD.

2. The Gnosis Auction allows the community to contribute funds and join deScier.

3. After a fixed period, the Gnosis Auction resolves, forwarding its acquired funds to deScier and kick starting its operation. Should the Gnosis auction fail to reach a specific threshold, participants may withdraw their stakes.

deScier’s genesis auction will be on a minimal funding assumption, but otherwise follow full transparent launch mechanisms. Once the auction completes, deScier members may decide to initiate various other fundraising mechanisms such as Balancer Liquidity Bootstrapping Pools or OTC issuance of $deSci to selected parties at the full discretion of its community. The $deSci token will be in complete control of its community upon genesis.