November 12, 2022

GBM Auctions Coming to Polygon to Make NFT Drops More Fun, Fair and Rewarding

GBM’s Bid-to-Earn smart contracts, which let bidders make money even if they are outbid, are now optimized for Polygon helping make non-fungible token (NFT) drops work better for all the parties involved.

Current distribution methods of NFTs are deeply flawed. First-come-first serve approach reduces revenues for the projects and favors bots while pushing regular users to secondary markets. A typical auction is a winner-take-all affair with little incentive for users to participate, which leads to fewer bidders and undervalued items. Dutch auctions, where the price is reduced until the buyer is found, are difficult to price and suffer from the winner’s curse.

GBM auctions make bidding both exciting and lucrative. When a bid is placed, a formula calculates how much money can be earned if the bid is topped. Every bidder that gets outbid receives their money back and earns an incentive, the highest bidder wins, and the seller gets whatever is left in the pot.

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This approach results in more activity, better price discovery and fairer drops. Projects can supercharge their user base and sales revenue, while users get a rewarding and engaging experience for every drop.

Instead of building an auction mechanism from scratch, NFT, gaming and Metaverse projects on Polygon can take advantage of GBM’s smart contracts that are specifically designed for the network. Aavegotchi, a Polygon-native NFT gaming protocol, has already incorporated GBM into its offerings and seen a 158% increase in revenue with $52 million in total sales.

Learn more about what GBM auctions can do for your project and tune into the Polygon Blog for the latest from our ecosystem.

Let’s bring the world to Ethereum!