Auction House

The P2X Protocol Auction House ensures fair PLS coin acquisition with contribution limits, promoting equal opportunities and stable ROI in DeFi.

Introduction

The Auction House is a central feature of the P2X protocol, serving as the primary mechanism through which users can acquire PLS coins. This system is designed to ensure a fair and equitable distribution of tokens based on user participation.

Participating

• Depositing PLS Coins: To participate, users first need to deposit PLS coins into the Auction House. This will be done through a user-friendly interface provided by the P2X platform. The process involves selecting the amount of PLS to deposit(a cap of 55,555,555 million PLS per miner; see Caps) and confirming the transaction within the user's wallet.

• Daily Mining Cycle: The Auction House operates on a daily cycle. A predetermined amount of P2X shares is allocated to the Auction House daily. The number of shares available each day is fixed and publicly known, as part of the protocol's transparent operations, capped at 1,000,000.

• Determining Miner Distribution: The amount of miners that a participant can claim depends on their proportionate contribution to the total PLS coins deposited in the Auction House for that day. For instance, if a user contributes 10% of the total PLS coins deposited on a given day, they would be eligible to claim 10% of the miner's allocated yield that day, but as a total sum of all previous miners' proportional allocation in the group.

Caps for Miners

• The reason miners will have a capped amount of PLS associated with them is to prevent large participants from filling up a daily Auction House lobby easily with excess PLS and thus causing all of the same-day users and following-day users to experience overly extended ROI to 2X.

• Each miner will have a maximum of 55,555,555 million PLS associated with it.

Claiming PLS

• End of the Mining Cycle: At the end of each daily mining cycle, users will see their ROI up to that day. The maximum amount of ROI for miners is 2X for just staying in the system. The claim process involves interacting with the P2X platform to initiate the ending of the miner at the user's discretion. The user can, at any time, end the miner. The ROI will be displayed, and even if the user wants to exit the protocol with less than their principal (which will be displayed as a warning to the user), they can do so as they wish. All users who do not manually end their miners at a 2X will be eligible to be removed from the mining pool by a public call function that the community will manage. This allows the community to keep the mining pool level participation to its smallest possible amount.

• Abandoned Miners: If a user abandons their miner and does not use the Auto-Mine option, the miner will sit in the contract with all the principal and yield earned until the user interacts with it.

• Token Receipt: Upon ending the miner, the PLS tokens are transferred to the user's wallet.

Fairness

• The Auction House is designed with transparency and fairness in mind. All transactions and allocations are visible on the blockchain, allowing users to verify the process. This system ensures that token distribution is based solely on the relative contribution of participants, preventing any unfair advantages or manipulation. The UI will display several sets of data for users to use to make their own decisions.

Conclusion

The Auction House is a key mechanism of the P2X protocol, facilitating the decentralized and fair distribution of miners. It encourages participation in the ecosystem by allowing users to acquire PLS coins in a transparent and equitable manner. This feature underscores the protocol’s commitment to maintaining a balanced and inclusive DeFi environment.