Truffle Project containing the Inverse Dutch Auction smart contracts. Ideas were taking from he Gnosis token launch and improved upon. The auction drops the ETH being raised over time while fixing the number of tokens sold.
The Gnosis model was revolutionary and afforded the following improvements:
(1) It allowed participants to imply a market cap with there bid. (2) By tying the implied market cap to a time variable, it solved Ethereum-specific throughput issues. Guaranteeing participation for those willing to pay the highest price.
Unfortunately the Gnosis model was not received as well as it should have because the tokens sold out immediately. Why?
(1) The Initially token price was not set high enough to dissuade investors from going in too early (2) Although this investor behavior resulted in a high token price, The unsold tokens were kept out of circulation by the Gnosis team, essentially acting as a capped sale of 250,000 ETH with participants receiving just a large a large chunk of the "circulating" tokens.
The Inverse Dutch Auction presented here, solves these problems entirely. Instead of Setting the ETH to be raised and dropping the ratio of equity over time, it drops the ETH being raised over time while fixing the amount of equity sold.
npm install -g truffle
git clone https://github.com/zmitton/InverseDutchAuction.git
truffle test
Change the migration arguments in migrations/2_deploy_contracts.js.
truffle migrate --network rinkeby
All smart contracts are released under GPL v.3.