BIP-16: Setting Reserve Price for Fragmentation Period

Summary

This BIP is to decide on a reserve price for the 2nd Period: A) no reserve B) dynamic reserve - lowest of last 3 auctions, starting after 3rd auction. C) keep 10 ETH reserve in place

Rather than proposing one option over another, this BIP presents different options discussed with their arguments and can be decided by a ranked choice vote where governors order their preferred options.

If an option does not receive 50% of the initial vote, the bottom choice is eliminated and those governors' votes are moved to their 2nd ranked choice. This process repeats until one option has >50%.

Please refer to the BIP-16 forum post for full details and discussion.

Specifications

1. Remove Reserve

All auctions start at 0, with no minimum bid or reserve price

2. Dynamic Reserve - lowest of last 3 auctions, starting after 3rd auction.

• Start with no reserve for first three auctions in the Fragmentation Period. After each subsequent auction, set the reserve to the lowest price of the last 3 auctions.
• A price is considered zero if the reserve is not hit/no sale occurs. So in the event that three consecutive pieces go unsold the reserve would be zero.
• The DAO will decide how it will implement the reserve price, whether through SR or a bid by the DAO, after the 3rd auction so that it can be made with knowledge of the price range for Fragmentation Period. If no decision is made on implementation, the DAO will default to a reserve on SR. (See the Forum BIP for more details.)

3. Keep 10 ETH Reserve

Do nothing, reserve remains at 10 ETH