Thank you @theKuntaMC and @Paul, that would be really helpful.
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Hi, Cameron here from GBM- I worked with Paul on this Sip. Technically speaking, what our dApp will do is create a proxy NFT that represents the full bundle, while the individual parcels are put in escrow so everything is completely trustless. This proxy NFT is what is being sold- which you can keep as well as a collectible, along with the estate.
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Hi there - Cameron here from GBM. I can confirm this is the “win-win” style or “bid-to-earn” model that Sandbox has been using already for their land sales. Whenever a bidder gets outbid, they make money - in this case $SAND.
A formula calculates in real-time what your reward will be, and bidders can see this beforehand -before they commit to the bid.
Incentives are self-funding. Rewards come from the final sale price, but they’re only distributed when a bid increases- meaning you’re paying out of the new value created, never out of pocket. The system is designed for more participation, better price discovery for sellers, and more rewards for bidders- so everybody wins.
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Thank you for your reply @CameronGBM !
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Hi Cameron! I’ve been dying to know how it’s possible to make money from getting outbid. I’ve read the paragraph about it coming out of new value, but I think the concept is still escaping me. Would you mind breaking it out with an example?
Let’s say a LAND starts a bid at 10,000 SAND. I put in for 11,000, then another bidder bids 12,000, and a third bidder wins it with a 13,000 bid.
Who gets paid what amount?
Thank you! 
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Hey SIP is now in Voting!
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Hi, sorry for the delay here! Happy to clarify how this works.
Our system calculates bidder rewards based on how much higher a new bid is compared to the current price. The bigger the jump, the higher the reward. Sellers can choose from several preset options that cap the maximum reward rate.
For example, let’s assume the auction uses the “High” preset, which caps rewards at 10% and requires each new bid to be at least 10% higher than the previous one.
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Bidder 1 bids 10,000 $SAND. Their potential reward (if outbid) is 10%, or 1,000 $SAND.
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Bidder 2 bids 11,000 $SAND. Their reward would be 1%, since the increase was smaller. Once Bidder 2’s bid is placed, Bidder 1 is refunded 10,000 $SAND plus their 1,000 $SAND reward.
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Bidder 3 must bid at least 12,100 $SAND (10% higher than 11,000). If they bid 12,100, their reward would also be 1%, or 121 $SAND. Bidder 2 is then refunded 11,000 $SAND plus 110 $SAND in rewards.
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Bidder 4 bids 13,310 $SAND, the minimum allowed next bid. Bidder 3 receives their 12,100 $SAND plus 121 $SAND reward. Bidder 4 wins the auction.
The seller receives the final winning bid minus total rewards, which in this case total 1,231 $SAND (about 9.25% of the final bid).
In reality, with our system, if someone really wants the item, it’s now in their interest to bid the true value straight away, as they will either win or they maximise their rewards.
We have a simulator here where you can experiment and put in your own figures to see how rewards are calculated and what the impacts are - Simulator
Hope that helps!
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Oh GEEZ! That was a great explanation and that simulator link is bringing in the big guns. Thank you for that.
let’s assume the auction uses the “High” preset
So per the simulator link, I assume I could choose from low, medium, high, or degen presets? Why wouldn’t the bid creator just choose degen preset every time to maximize rewards?
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Glad that helped! Yes, the seller can choose which preset to use. The higher the preset, the more engaging the auction becomes- bidders are more motivated to participate and drive price discovery. The trade-off is that a higher portion of the sale proceeds goes toward bidder incentives.
Ultimately, it’s up to the seller to decide what they’re comfortable with. As a best practice, we recommend using a higher preset for unique, rare, or hard-to-price items, and a lower preset for assets with a more established market value.
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I wanted to ask about something unrelated to this SIP and probably would require another SIP.
Is it possible to create a land renting mechanism in GBM? Someone has land, wants to rent it on the market, someone else wants to use land temporarily, both go to GBM platform to do that.
Thoughts?
Reference
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seems like a Q for @CameronGBM ….
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Yes that was a question meant for him. The response thingy doesn’t show that it is in response to him, but when I click the edit button it shows I replied to his response.
I’ve been seeing that for awhile now and wasn’t sure it was properly tagging the response post or not…
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Gm! You could use the GBM Bid-to-Earn model for price discovery in theory for anything - even price discovery on what rents should be. It would be a new Sip and scope of work we would need to put in front of TSB so everything is done on platform - but this is a use case that we could help with as well.
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Hey Cameron, I’m not sure I fully understand your response. Does bid-to-earn relate to renting land?
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Hi @Lanzer - yes we could use Bid-to-Earn for renting Land. However this would have to be put in a new Sip/proposal and agreed on by TSB first.
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We are pleased to announce that SIP-36 passed with a very positive response!
Congratulations to @CameronGBM & team!
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Wow, this is Good News!!!
Congratulations @CameronGBM
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Yes, that’s understood. I’m asking if it is possible before suggesting it in other discussion threads. I see that it’s possible and I appreciate the answer.
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