Reserve price setting is the process of establishing a minimum acceptable price for an asset or item in an auction, below which the seller will not proceed with the sale. This mechanism serves to protect the seller’s interests and prevent assets from being undervalued. It ensures that the transaction meets a predefined threshold. This practice balances market demand with seller expectations.
Context
In cryptographic auctions and non-fungible token (NFT) marketplaces, effective reserve price setting is a crucial strategy for sellers to prevent digital assets from being sold at an undesirable price. This mechanism helps manage risk in volatile markets and ensures that the seller’s economic expectations are met. The implementation of reserve prices within decentralized auction protocols is a key aspect of fair and efficient digital asset trading.
A new cryptographic second-price auction enforces off-chain influence proofness, fundamentally securing transaction fee mechanisms against miner censorship and rent-seeking.
We use cookies to personalize content and marketing, and to analyze our traffic. This helps us maintain the quality of our free resources. manage your preferences below.
Detailed Cookie Preferences
This helps support our free resources through personalized marketing efforts and promotions.
Analytics cookies help us understand how visitors interact with our website, improving user experience and website performance.
Personalization cookies enable us to customize the content and features of our site based on your interactions, offering a more tailored experience.
