Ms. Chen Yu, the chief scientist of Algorand, personally explained the Dutch auction rules.
Beijing time on June 18th at 18:00, that is, tonight, Algorand will start the first round of Dutch auctions, when the Algorand main network will be online.
During this time, many articles about the Algorand Dutch auction have been circulated on the Internet. I believe many readers will still have a little understanding after reading it. Moreover, some WeChat communities have also appeared many representative investment institutions that claim to be cooperating with the government. Can these investment institutions be credible?
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- The price of the currency should be determined by the market, and Algorand will hold a Dutch auction.
On June 17th, Odaily Planet Daily invited Ms. Chen Yu, the chief scientist of Algorand, to be a guest in the super-speaking community, explaining the Algorand Dutch auction rules, the incentive mechanism of the main online line, the refund principle of the Dutch auction and the latest technological progress of Algorand. Wang Bit, the partner of Bitite, served as the host of the live broadcast of the community quiz.
The following is the community Q&A session:
Q: First of all, the first question is why the Algorand team chose the Dutch auction method?
Chen Wei: The Dutch auction is a very classic auction. The Algorand Foundation chose Dutch auctions for the following reasons: First, the core of the Algorand network and the borderless economy is fair. The Dutch auction is determined by the market to determine the fair price of the pass, rather than the price set by any particular entity.
At the same time, in the Dutch auction, the price of the pass obtained by all participants is the same, and all participants are treated fairly. And the Dutch auction is very convenient for users to participate remotely. Users do not need to be online all the time during the Foundation's auction. Users can bid and then go offline, then they can return to online and continue to bid.
For details on the auction, you can refer to: https://algorand.foundation/algo-auctions
Q : After the first round of Dutch auctions, is there a plan for an online exchange?
Chen Yu: Yes. The Algorand Foundation has been supported by several top exchanges, and the online exchange will be announced after June 20.
Q : Regarding the price, the private price of Algorand is 0.05USD, and the starting price of the Netherlands is 10USD, which is 200 times. Some investors think that the starting price is too high. What do you think? Why is the starting price set at $10?
Chen Tong: The starting price of the Dutch auction is not the same as the final price. The auction set the starting price of 10USD, the lowest price (reserve price) 0.1USD, the entire auction will last for 4000 blocks, about 5 hours.
In this process, the user's bid will be placed on the blockchain. As said before, the final price of the auction is determined by the user's bid, not determined by the auction start price and the reserve price set by the auction itself.
There will be a total of 25million Algos in this auction. In addition, you may have seen from the Foundation website and the Algorand Chinese community that Foundation provides a one-year refund policy for the auctioned Algos, up to 90% of the final price.
Q : For Chinese investors, the participation conditions of Dutch auctions are very demanding. Can Chinese investors directly participate in Dutch auctions? In addition to the Dutch auction, what other channels can participate in Algo's investment?
Chen Wei: The following countries and regions are unable to participate in the auction: United States of America and its territories, Canada, Democratic People's Republic of Korea, Cuba, Syria, Iran, Sudan, Republic of Crimea, People's Republic of China, and jurisdictions in which The auctions and/or trading of the tokens themselves are prohibited, restricted or unauthorized in any form or manner whether in full or in part under the laws, regulatory requirements or rules in such jurisdiction.
But you can participate in the Algorand ecosystem in other ways: https://tracker.algo.capital. For example, Algo Tracker Fund, above is their website and email address.
Other platforms are not official channels for investment channels. Algorand cannot guarantee its security and reliability. Please take care of its own risks. The only way to get Algo is through the auction of the June 19 Foundation.
Q : According to the rules of the Dutch auction, the price of the token is determined by the investor who participated last. The cost price of the investor is the same. So what is the difference between early shooting and late shooting?
Chen Wei: In the Dutch auction, if the bids of the two users are different, the bidding of the participants with high bids will be processed first. In the case of the same bid, it is a first come first served principle until the total amount of the pass is sold out. So if the auction does not end after the bid, then there is no difference. If the auction ends between the early and late shots, the latter will not be processed.
Q : “Bid before the auction starts”, if the participants who have confirmed their highest bids can bid in advance, what are the benefits of bidding in advance for investors?
Chen Wei: The bidding design before the start of the auction is to take care of users in different time zones, and does not need to wait until the auction begins. At the same time, as mentioned above, the Dutch auction is on a first-come, first-served basis when the two users bid the same, and the bid of the first shot is processed first.
Q : Do individual investors have an investment limit?
Chen Wei: No
Q : Will investors be required to lock positions after the auction ends? Can investors trade freely?
Chen Wei: If you don't ask, you can trade freely.
Q : Through continuous Dutch auctions, the Algorand Foundation expects to receive a considerable amount of funds. Is there any specific use plan for this fund ?
Chen Wei: The foundation's funds will first be used to guarantee the implementation of the refund policy. The remaining funds will be used to develop technology, further develop the platform, provide new tools for developers, support the development of the community, etc. Wait. According to the Algorand Network roadmap, the main network will continue to be upgraded. In short, Foundation's mission is to support the development of the Algorand network and community for a long time.
Q : In addition to the upcoming Dutch auctions, other types of issues that community users are concerned with are mostly related to the incentives in the chain and the future development plans of the main network. So what incentives can investors get after the main online line?
Chen Wei: Algorand will give priority to expanding the number of users at the beginning of the main online line, so the initial reward mechanism is distributed on a per-proportion basis. In the subsequent development, Foundation will gradually increase other incentives, such as relay. As you can see from the Foundation website, Foundation has reserved a large part of Algos as a reward mechanism.
Q : The next question is also related to the main network reward. Most of the previous questions were answered. Then, the full fair reward mechanism at the beginning of the main online line will not cause enough enthusiasm for participation in the consensus. What is the new incentive mechanism that is expected to start?
Chen Wei: As mentioned earlier, Foundation hopes to make more users join the ecosystem, so the reward mechanism is proportional to the amount of the certificate. In the early days, many enthusiastic technicians and developers have joined the consensus. Among the mechanisms. The important thing is that the cost of participating in the Algorand consensus agreement is very small. Many ordinary users can easily participate in it. They don't need to buy specialized equipment like mining. More incentives, such as the relay just mentioned, will be Subsequent versions have been added.
Q : Where is the biggest difficulty in Algorand's consensus mechanism? How is the scientific team solving this problem?
Chen Wei: It is not easy to design a consensus mechanism that is both scalable, secure, and decentralized.
Algorand's consensus agreement selects participants at each step through the Pure Proof of Stake approach, which does not require users to lock their own shots for a long time or entrust a small number of users to participate. Each user's voting power at each step is directly proportional to the number of passes, ensuring fairness and decentralization of the system.
The implementation of security is based on a hidden self-selection mechanism. The attacker cannot know the participants in each step in advance, and cannot initiate a targeted attack in advance. At the same time, Algorand's innovative Byzantine agreement can support this step of re-selecting the participants' operations, which makes it impossible for the attacker to better predict the next participants after seeing the participants in the previous step. Safety.
At the same time, Algorand's Byzantine protocol is very efficient, and the hidden self-selection method greatly reduces the number of participants. The participants do not need to communicate with each other to find out who is selected. This is the calculation amount and network traffic of the entire system. Highly scalable.
Q : After the main online line, what is the TPS, and what kind of commercial application can it support? In the future roadmap, will the main network TPS be further improved, or will it maintain the stability of the main network and expand the L2 network?
Chen Wei: I have done a lot of tests in the test network stage. With 10,000 globally distributed participants, I can stably reach more than 1000 TPS with a delay of about 5 seconds.
In addition, this is the case where the average number of tokens allocated by all participants is the most distributed and decentralized situation that may occur. This situation is more difficult than the actual currency holding situation after the main online line. The PoS protocol is the most difficult scenario. We intend to set a high standard in the performance test, so that everyone has higher confidence in the scalability and timeliness of the main online line.
Q : Which parts of Algorand's smart contract roadmap are divided? When do you start supporting the issuance of tokens on the Algorand chain?
Chen Wei: Algorand's test network already supports multi-sign, multi-sig, as mentioned in our roadmap, we will first support automic swap that can be completed by a transaction, and need to use various lock structures, need more The steps are different, and no special locks are needed here.
Automic swaps implemented on other blockchains are mostly designed to prevent 51% attacks, but have long delays and time locks. Algorand's blockchain doesn't fork, so it has immediate finality, and the real Automic "automic swap" can be implemented in the simplest way.
Next, our smart contract will be iterated over and over again, gradually expanding the supported logical sets. This roadmap combines performance and security in design, and incorporates many of the experience and lessons learned from the design of some smart contract platforms to ensure its ease of use and security.
Q : Does the Algorand Foundation have eco-motivation and guidance programs for communities and developers, such as the Bounty program or developer contest, hackathon, and the like?
Chen Wei: As the Algorand codebase was open source on June 12, the Bug bounty program also started: https://bugcrowd.com/algorand.
The hackathon has also been held in many places. The Algorand community ambassador program has also attracted many enthusiastic participants. The Foundation will further strengthen the community and developer ecological construction and expand the hackathon to more cities. Down to the line, the scale will be further expanded.
The community for developers has been under construction. You can also see more information from developer.algorand.org and the forum above. With the main online line, there will be a lot of community-oriented activities and participation methods. Welcome everyone. Follow the latest news on our homepage and Chinese community.
Q : Very exciting. The questions that the AMA collected from the community in advance have all been answered. During this period, we saw that friends in the live broadcast room and in many communities have already raised many questions. Since the time has passed a lot, then we will Ask the guests to answer the questions that are most concerned and representative of several users.
Q : First of all, the first question, if the token obtained by the user in the auction is sold in the middle, and then bought back from the secondary market, can still enjoy the refund policy.
Chen Yu: Still enjoying.
Q : Is there a limit on the number of relay nodes? What are the requirements for applicants?
Chen Wei: There is no limit to the number of applicants.
Q : At what speed and frequency will the price of the token in the auction fall?
Chen Wei: It will drop linearly. As mentioned earlier, the starting price of the auction is 10USD, the reserve price is 0.1 USD, and the auction will last for 4,000 blocks. For every 40 blocks, the price will drop by 0.1USD.
Author | Wang Ye
Edit | Lu Xiaoming