Punk AuctionPrice

(PAST)

Punk Auction is a decentralized, perpetual auction protocol designed to acquire CryptoPunks from the market and re-auction them. The system operates autonomously using its treasury to facilitate a continuous cycle of demand. By acquiring these high-value NFTs and putting them up for auction, the protocol creates a mechanism where the native $PAST token is utilized and subsequently removed from circulation through a burning process.

The protocol utilizes a Dutch Auction mechanism for selling acquired CryptoPunks. In this format, the starting price is set high and automatically decreases over time according to a set decay function. The auction concludes when a participant places a bid at the current price level. This method is designed to let the market determine the fair value of each Punk in terms of the $PAST token, ensuring transparency in the price discovery process.

A central feature of the Punk Auction protocol is its deflationary mechanism. When a user wins an auction for a CryptoPunk, the $PAST tokens used for the winning bid are permanently burned. By destroying these tokens, the protocol effectively reduces the total circulating supply. This burning process is intended to create scarcity as more auctions are successfully completed, directly linking the acquisition of NFTs to the reduction of the token supply.

$PAST is backed by ETH through a bonding curve contract. This technical structure ensures that there is liquidity available within the protocol for minting and redemption. The supply of $PAST is dynamic rather than fixed; it increases when users deposit ETH to mint new tokens via the bonding curve and decreases whenever tokens are burned following a successful auction. The token's internal protocol value is directly tied to the ETH held in the bonding curve.

Users can acquire $PAST through two primary methods. First, they can mint tokens directly from the protocol by depositing ETH into the bonding curve. Second, $PAST can be obtained through secondary markets, including platforms like LBank and various decentralized exchanges. Users can manage these transactions using standard Web3-compatible wallets to participate in the ecosystem and its deflationary auction model.

The protocol treasury acts as a permissionless, autonomous buyer within the NFT market. It is programmed to acquire CryptoPunks based on specific internal parameters, typically targeting assets at or near the current floor price. Once purchased, these Punks are entered into the perpetual auction cycle. This design allows the protocol to act as a consistent buyer in the ecosystem while fueling the $PAST token's utility and burn mechanism.