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We view auctions as one of the key mechanisms of sustaining the Treasury and seeking various directions for development and capital expansion. When executed appropriately, auctions can help stabilize the value of the tokens, reduce the risk of dilution, and provide funding for the growth and development of the DAO.
During an auction, Spiral DAO will be selling the native DAO tokens (COIL) with a discount compared to the current market price in exchange for the assets Spiral DAO aims to acquire.
The discount may vary, but usually, it should be around 10%.
Spiral DAO auctions are held in an overflow (oversubscription) manner:
- If the Treasury aims to raise $10mln worth of tokens but raises only $5mln — $5mln will be sold, and the remaining $5mln will be burnt.
- If the Treasury targets to raise $5mln and manages to get $20mln in commitments — everyone will receive 75% of their commitments back and 25% in the form of COIL.
There will be an Initial Treasury Offering following the overflow model.
After that, the auctions will be executed periodically under the approval of DAO governance and only when the current Backing Ratio of the Treasury (Market Cap of COIL/Treasury value) is at least 1.5.
Follow the community updates via our social media not to miss out on a new auction.