Primary auction

The primary auction has several rules:

The initial bid is determined by the length of the name, the shorter the name, the more expensive it is.

This is necessary to protect the space from "littering", so that short names go to the real beneficiaries of brands, commercial and government organizations, as well as large influencers.

Betting takes place on the project token $TRUE.

In case of token absence, the auction provides automatic conversion of ETH to $TRUE and the bid. All this happens natively and does not require any extra actions from the user.

The minimum bid threshold is set by the contract and is adjustable. This is done for the moment of multiple growth of the token so that the value of the name has adequate values.

The auction has a minimum time triggered by the first bid. This value is dynamic and is set in the contract.

The next bid threshold and its minimum value are determined by the contract logic.

The increase in the auction time after the bid is determined by the contract logic.

Technical specification

Everyone with an invite who hasn't chosen a username yet can participate in the auction. Users who have signed up but don't have a username can select an available name and put it up for auction.

The auction works in a standard way: the highest bid at the end of the auction wins. The starting price for a name is calculated based on the Invite section formula.

When a name is first bid on, the auction is set to end in 1 month. This end time decreases each time according to an editable variable. Each new bid extends the auction by 10 minutes. Each new bid must be at least 5% higher than the current bid.

When an auction is won, a transaction is generated in Ethereum (ETH). After passing through the required bridges (from Layer 2 to ETH and back), Layer 2 updates its state and assigns the name to the user. This ensures consistency between ETH and Layer 2. Additionally, a flag for locking the name is set in ETH, allowing the name to be transferred by default.

These processes can be illustrated as follows:

- Diagram of how a name is put up for auction and how bids exceed the current offer.

- Diagram of assigning a name in ETH through bridges.

A separate point to highlight is the "reward calculation by graph" mechanism. This system distributes rewards as follows:

85% is distributed on Layer 2 among the referral program participants up to 8 levels deep (or fewer if there are less than 8 levels). If levels are fewer, the remainder goes to the last level.

• Level 1: 35.00%

• Level 2: 10.00%

• Level 3: 7.00%

• Level 4: 7.00%

• Level 5: 7.00%

• Level 6: 7.00%

• Level 7: 7.00%

• Level 8: 5.00%

• 10% is burned

• 5% goes to the DAO/team wallet

The bid contains 3 variables:

Name, bid amount in $TRUE tokens, name selected as provider(default trustnamespace$)

At the end of the auction time the name is released, its owner is the wallet that made the last bid, as well as under the name is released NFT to its owner.

The contract confirms ownership of the name and preserves its history.