What is a Step-Down Auction?

What is a Step-Down Auction?

A Step-Down Auction is a listing type on the GoMining Marketplace where the price of a miner drops over time. The seller sets a starting price and a final price, and the price then moves down automatically in fixed steps until someone buys the miner or it reaches the final price.

Despite the name, it does not work like a classic auction. There are no bids and no competition between buyers. Whoever decides to buy first at the current price gets the miner. This format is known as a descending-price, or Dutch, sale.

Why use a Step-Down Auction?

For buyers, it is a chance to get a miner below its starting price. Instead of negotiating, you simply watch the price come down and buy once it reaches a level you are comfortable with.

For sellers, it is a way to let the market find the right price on its own. You start high, and the price steps down on a set schedule until a buyer steps in. You stay in control the whole time, because you decide both the highest and the lowest price you are willing to accept.

How does it work?

A few simple rules define every Step-Down Auction:

• The price drops automatically by a fixed amount (the drop amount) at a fixed interval (the drop frequency).
• The drop frequency is one of three presets: every 1 hour, every 4 hours, or every 24 hours.
• The price never falls below the final price. Once the next drop goes below it, the price stops dropping for good, and the listing continues at the final price like any regular listing.
• You can buy at any moment at the price shown right now.
• Payment is made in the GOMINING token and is charged instantly.

Because there are no bids, the price you see is the price you pay, and the first person to buy gets the miner.

Getting ready to buy

Before you can buy on the Marketplace, two things need to be in place. Both take only a moment.

1. Have an active miner. Buying is available to users who own at least one active miner. Owning a miner unlocks marketplace purchases, earns BTC daily, and lets you withdraw your mining rewards whenever you want.
2. Complete KYC Level 1. Purchases require identity verification. On the Verify your identity first screen, tap Verify now and complete KYC Level 1. While your verification is under review, which usually takes a few minutes, you can tap Continue shopping and keep browsing. Once it is approved, buying becomes available, and verification also opens up other features across the GoMining ecosystem.

How to buy a miner in a Step-Down Auction?

1. Open the Marketplace. Go to the Marketplace from the main menu. Miners on Step-Down Auction appear in the shared miner list and can be found using the auction filter. You can also check the Hot Deals block, which highlights the miners with the strongest value.
2. Choose a miner. Open a listing you like and review its details before buying. Worth checking:
   • Hashrate (TH): the mining power you are buying.
   • Energy efficiency (W/TH): the lower the number, the better, because it means lower maintenance costs.
   • ROI: shown on the miner page, it helps you judge whether the current price is a good deal.
   • Collection and rarity: if that matters to you.
3. Watch the price. The price drops on the listing's schedule. You can buy immediately at the current price, or wait in case it drops further. Keep in mind that another buyer can take the miner at any moment.
4. Buy. When the price suits you, tap Buy and confirm. Payment in GOMINING token is instant, and the miner moves to your account right away.

If the price changes between tapping Buy and confirming, the system shows you the new price with a notice. Just confirm again at the current price.

How to sell a miner with a Step-Down Auction?

1. Start a listing. Choose the miner you want to sell, create a listing, and select Step-Down Auction as the sale type.
2. Set your parameters:
   • Starting price: the price your listing begins at.
   • Final price: the lowest price you are willing to accept. The price never drops below this. It is set with a slider, so it always lines up with your drop amount.
   • Drop amount: how much the price goes down at each step. The minimum is 0.25 GMT.
   • Drop frequency: how often the price drops (1 hour, 4 hours, or 24 hours).
3. Check the schedule. Your starting price, final price, drop amount, and frequency together decide how long the listing runs. A listing cannot run longer than 30 days, so if the schedule is too long, raise the drop amount, raise the final price, or pick a more frequent drop.
4. Publish. Once published, the price starts dropping on schedule. You can remove the listing at any time before someone buys it.

If you set the starting price far above the current market price, you may see a warning. It does not block your listing, but it is worth keeping your price realistic so the miner actually sells.

What happens when the price reaches the final price?

Nothing breaks, and the miner is not removed. The price simply stops dropping, and the listing continues at the final price like a regular fixed-price listing. It stays available until someone buys it or you remove it.

A few things to keep in mind

• Waiting is a trade-off. A lower price may come, but another buyer can take the miner before you do.
• A purchase is final. Once a miner is bought, the sale cannot be cancelled by either side.
• You need an active miner to buy. Browsing is open to everyone, but buying requires at least one active miner on your account (a bonus miner does not count).
• Verification is required. You need to complete verification (KYC) before you can buy on the marketplace.