Auctions are a measure implemented for the initial offerring of Tezos Domains to increase fairness. The auction process makes sure the registration process doesn’t give advantage to buyers using bots to register popular domains or otherwise gaming the system. Two weeks into the launch, all domains that haven’s been auctioned become available for registration without an auction. Check out the Schedule section to about more.
We use an open ascending-price auction model. In this kind of auction, you see what other people bid, but you can only bid with a higher amount than the highest bid so far.
On the domain detail, you will see a list of bids so far, or (if no bids have been placed) an invitation to place the first bid. The lowest possible first bid is 1ꜩ, while every further bid has to be at least 10% higher than the last bid, rounded to the nearest whole tenth of a tez.
A typical minimum bid sequence in ꜩ is 1.0, 1.1, 1.2, 1.3, 1.4, 1.5, 1.7, 1.9, 2.1, etc.
Bidding on all domains takes place during the two weeks following Tezos Domains launch. The only exception is if there is a bid during the last 48 hours before the bidding close: then the bidding period is extended so it ends 48 hours after that bid, repeating until there are no more bids during the final 48 hours.
After the bidding closes, the highest bidder is proclaimed the winner. At this point, the domain ownership is not transferred automatically - the winner needs to go to the domain detail and claim the domain for themselves. They have 365 days to claim the domain, and the expiration date of their new domain will be the same no matter how long they wait before claiming it.
When you are outbid by someone else, the former highest bid is safely stored in the contract. You can either use the balance to place another bid or withdraw it at any time. Your stored balance will work for all Tezos Domains bids automatically.
Your current auction balance with the option to withdraw is available on your account screen.