Articles on: Store Features

How do Auctions work for your NFT Hub?

All set with your NFT Store? Waiting for the right buyer to make the NFT purchase? Well, how about making this entire process a little more exciting and rewarding? Yes, with the Auctions feature, you can now put your NFTs open for bidding and let the race to claim them begin!

NFTICALLY offers the English Auction and the Dutch Auction feature, so let’s explore what it exactly is and how you can benefit from it being an NFT Store owner.

English Auctions simply refer to the process of bidding and winning where the highest bid takes home the cake. Yes, the highest bid made on any asset will eventually win.

Dutch Auction refers to the process, where a seller generally starts with a high price of an asset, but eventually lowers the price until someone accepts it. In Dutch Auction, prices can be lowered up to a level till it reaches the pre-determined Reserve Price.

Once the auction is concluded, and all the bids are received, the NFT Store owner will then be choosing the highest bidder and the asset will be transferred to the respective bidder, after the transaction has been completed successfully.

The option to choose the highest bidder is completely an action call to be taken by the seller. NFTICALLY does not bind the seller in any way to choose the highest bid by automating the process. The accepting of bids is kept simple and open for sellers.

It is important to note here that the bids made in the last 10 minutes of any auction will eventually extend the auction time by another 10 minutes.

Let’s dig a little deeper and understand what comprises Minimum Bid and Reserve Price.

Minimum Bid: This reflects the base price which the seller will set as a threshold. In simple terms, an auction will start from this stated price. Once a seller has specified a minimum bid, the bidders cannot bid anything lower than that.

For instance, if the seller has fixed the Minimum Bid for any asset at 100 WMATIC, the bidder will have to start bidding from this stated amount. Say a bidder can now bid something like 120 WMATIC.

Reserve Price: Now, this price is set by the seller as the minimum amount at which they will accept the bid. Generally, this price is not publicly visible, and those who bid higher than this have a higher chance of winning the auction.

Consider the reserve price as the price at which you actually want your asset to be sold. So, if someone bids lower than this price, it is completely up to the seller whether to accept the bid or not.

Moreover, the person placing a bid will be informed if their bid matches the reserve price or not, hence they will also get an option to improve their bid, if the situation demands.

So, to sum up, reserve price is the amount which the seller sets considering their expectations from an asset. This price is not visible to the bidder but the bidder is able to bid regardless of whether their bid has matched the reserve price or not.

How to put up your NFT on an auction:

Go to your NFT store/marketplace, powered by NFTICALLY and go to the ‘My NFTs’ section.

Click on the ‘NFT Items’ tab on the left hand side. This will list all your NFTs which you have created so far.

Choose the NFT that you want to put up for the auction.

*Once you select the NFT, the respective asset page will appear. Click on the ‘Sell’ button, highlighted in blue below the NFT, to proceed further.

Upon clicking the Sell button, you will be redirected to the minting page. Here, you will have two options for putting your NFT on sale. One will be the Set Price option and the other will be the option for Auction. Choose the latter to proceed ahead.

Once you click on the Auction button, the first thing that you will be required to choose is the type of auction that you want to opt for. You may either choose the English Auction or the Dutch Auction.

The next step would be to set up a Reserve Price and a Minimum Bid for your auction.

The proceeding step would be to assign an expiration date and time for your auction. It must be noted here that past this date, no one will be able to bid on the auction as the auction will expire automatically.

Now, you would need to select the beneficiary for the sales proceeds. If you as the store owner are the creator and the seller of the NFT, then the sales proceeds should be attributed to ‘Self’, and if there are more than one beneficiary for a particular NFT, then you can create and select the respective payout group.

After filling out all the necessary information, the final step would be to post your listing. Click on the ‘Post Your Listing’ button on the right.

Once you click on the ‘Post Your Listing’ button, a pop up will appear, indicating that your collection is going to be deployed on the blockchain. To successfully achieve it, you would be needed to pay a gas fee. Your wallet will prompt you to accept the fee, click on ‘Confirm’ to proceed ahead.

Next, it would require you to accept the minting fee for listing your NFT. Accept the fee by clicking on ‘Confirm’ again.

It must be noted here that since this NFT was the first one to be minted under the collection, that is why three types of fee were applicable - Collection Deployment fee, NFT minting fee, and Approval fee. Whenever the next NFT will be minted under the same collection, only the NFT minting fee will be applicable and not the other two.

The final stage in the minting process would be to sign your order details. This is the final step of confirmation. Once you approve it, your NFT will be listed for auction. Therefore, click on the ‘Sign’ button to finalize the process.

Once you have signed the order details, your NFT will be put up for auction and you will see a message displayed alongside your NFT that your auction is live and will end on the set date.

This way you can create an auction for your NFT with a few easy steps. NFTICALLY makes it possible for you to get the best out of your NFTs in the easiest and most convenient way.

Updated on: 07/11/2022

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