Dragon Mainland, the immersive 3d Crypto NFT Game platform, has announced the launch of the Liquidity Bootstrapping Pool (LBP) of its governance token, DMS. The LBP auction is scheduled to launch today, November 17, 2021, at 12 pm UTC.
🤗The $DMS #LBP is here! It’s time! ⏳ Only 🔟 minutes left before it starts! 🎉🎊— Dragon Mainland (@DragonMainland) November 17, 2021
⏰Time: Nov 17 @12PM UTC
LBP Tutorial:👇👇https://t.co/XSzGXRbMZh#NFTs #Gamefi #P2E #DragonMainland $DMP pic.twitter.com/wb5xk7B0gn
The token auction is slated to take place at the official website of Dragon Mainland with the use of an LBP, which enables the free market to find a fair market value for the token.
The game platform recommends that before players participate in the LBP, they should take the time to understand the details of how it works. That means not chasing price moves but buying within their expected price range.
More about the LBP Auction
The LBP auction is also known as a drop-price auction and it is a standard feature in the launch of crypto token offerings. Issuers participating in the LBP can customize the weighting of the auction pool. Exponential or linear curves may be used to regulate the market value and avert a price spike of new coins because of hype and over-speculation.
LBP auction uses algorithms, which help to change the pre-determined weights of capital and make their auction prices decrease in a downward motion. When there are no buyers, the price of the DMS will drop over time.
However, if speculators are enthusiastic about the auction item, the price may rise from the start, even with the relatively high original price. The volatility in LBPs is quite normal and that is why it is recommended that participants do not chase price.
A Simple Guide on How to Buy the DMS in the LBP
The design feature of the LBP is such that the price of the auction item changes systematically from high to low with a predetermined weighting mechanism. Participants must remain calm and rational all through the process because Liquidity Bootstrapping Pool is more of a price discovery tool.
When the price rises too fast, it is better to remain patient and calm because the price will likely decrease with a weight change. It is recommended that participants wait for the price to return to what they think is reasonable before they bid.