The public sale for the HollaEx token (XHT) will follow the innovative Wave Auction (WA) model. Watch the Wave Auction video (1 minute).
To start, let's dive into the main terminologies used in the wave auction:
Wave: A wave gives top bidders the opportunity to obtain the HollaEx token. Each wave is a random self-executed limit sell order with a set floor price. On average there will be one sell wave per day.
Phase: Set of 10 consecutive waves (Wave Phase). After each phase ends a new floor price is recalculated.
Floor Price: The Floor price is the lowest price that tokens will be distributed during the current wave phase. Bidders are encouraged to bid at or above that floor price in order to catch the wave. A new floor price is established every Wave Phase (10 waves).
Low Price: The lowest price tokens get distributed at for each wave. The low prices are collected every phase (see figure 7) and used to calculate every new floor price (see figure 5).
Starting from floor price set as $0.2, HollaEx tokens are distributed amongst the top bidders with daily amounts following the innovation curve. There will be two Wave Auctions both lasting 500 days each, totaling 1,000 waves over roughly 1,000 days.
In each wave, people can place bids at or above the floor price and wait for the wave to come. A wave with its tokens gets distributed to the highest bidders first and then to the lowest bidders. The lowest price sold will be recorded for future use as the low price of that wave.
In case the wave reaches the floor price, meaning there is not enough demand for that particular wave and the wave does not get fully filled, the surplus amount in the wave gets redistributed among exchanges that are staking HollaEx Token proportional to the amount they have collateralized.
View a PDF guide on how the HollaEx Wave Auction works.