Onchain Domain Auctions and Rewards for Price Discovery
Insights from GBM and Namefi
Author: cryptoreporter.eth
In the recent Namefi Space, Cameron from GBM, a blockchain based auction platform, and Namefi converged to explore the transformative potential of tokenizing domain names using blockchain technology.
"We've invented a new gamified way to auction digital assets. We call it a bid to earn auction. Whenever a bidder gets outbid, they make a return. So you make money from participating in the auction itself and you're rewarded for the act in price discovery." says cameron.
"For sellers, it attracts a lot more users coming into play. You get a lot more activity, a lot more bids, a lot higher bids. Ultimately, you end up selling the asset for a far better price. For bidders, it makes it a much more rewarding and engaging experience because with this type of auction, you either win the asset or you make money. Either way, everybody wins and everybody walks away with something and with a fantastic experience."
Cameron emphasized the transparency and security inherent in blockchain-based auctions and highlighted the significance of on-chain instant settlement, a feature that ensures a trustless bidding process. This is particularly crucial in preventing gaming attempts during auctions, an issue that often plagues conventional auction platforms.
A key focus of the discussion was on transitioning traditional domainers to blockchain-based domains and auctions. The conversation underscored the enhanced control over assets and liquidity that blockchain technology offers, which are essential factors in driving adoption among domainers. The introduction of fully funded bids and financial exposure features was seen as a pivotal step in maintaining auction integrity and preventing manipulative practices.
Auction strategies and the benefits of on-chain options were major topics, with a strong emphasis on user transparency. The integration of services like ENS and Namefi was recognized as a significant advancement in the domain auction ecosystem.
The discussion also touched upon multi-chain experiences, including Namefi's integration to Base chain to reduce gas fees. This integration is expected to streamline transactions and make blockchain-based auctions more accessible to a broader audience.
In the end Cameron commented on the current state of crypto, and the importance of collaboration in space.
"We're at a very special time in this space in cryptocurrency where we're able to build these types of relationships and create these ideas. Both Namefi and GBM have been extremely accommodating, flexible, and innovative in bringing these ideas to life."
