🌌Event Horizon FAQ

PRTC Dutch Auction

As outlined in the Mirror Post Here

Protectorate’s Event Horizon will mark the initial distribution of PRTC, its native token, utilizing a Dutch Auction Model.

A Dutch auction is a type of auction in which the initial price of an item starts high and gradually decreases until a buyer is willing to pay the current price. It's also known as a descending price auction. This mechanism is designed to find the true market value of an item by allowing buyers to decide when to enter the auction based on the price they are comfortable paying.

To explain the mechanism in the simplest manner for the PRTC token sale:

  1. There will be up to 10,000,000 PRTC, representing 10% of total supply, allocated for the Event Horizon, coming from the treasury allocation as revealed in the distribution overview in the Protectorate Litepaper.

  2. The PRTC token Dutch Auction begins with a high initial price of $1 (implying a $100M FDV).

  3. The token price will gradually decrease over time, to its lowest price of $0.10 (implying a $10M FDV).

  4. Participants can enter the auction at the price they are willing to pay for PRTC tokens.

  5. The auction continues until the $3m hard cap is reached or the predetermined lowest price is reached.

  6. Participants will ultimately purchase at the final settlement price at the conclusion of the Dutch Auction, ensuring they pay no more than any other participant.

  7. The Event Horizon will be open for 72 hours. It will open at 10am EST on June 28th, and close at 10am EST on July 1st.

  8. Wardens will have access to the Event Horizon for the first 48 hours, acting as the β€œWhitelist” phase. The advantage of this phase is that Wardens will be first to access the available PRTC for sale. This allows Wardens to dictate market value of PRTC if the sale concludes during this time period.

  9. Public (Allegiants, Conscripts, Plebians, etc) will have access to the Event Horizon for the last 24 hours, if there is PRTC remaining by the time this period begins.

  10. The Event Horizon soft cap will be $1m USD. If this soft cap is not filled, all participants are refunded at the closure of the Event Horizon.

  11. There will be a hard cap of $3m USD. If this hard cap is filled, the Event Horizon closes.

  12. 24 hours after the Event Horizon closes, participants will be able to claim their PRTC.

  13. After PRTC claiming is complete, liquidity will be added for PRTC/ETH using a portion of the sale proceeds, serving as the initial Protocol Owned Liquidity.

Note: By utilizing a Dutch Auction, the Event Horizon allows participants to determine the market value of PRTC, ensuring maximum fairness for all participants.

Last updated