MusicArt rights owners can either SELL/RESELL or AUCTION/RE-AUCTION their NFTs. Here's how auctions and re-auctions work:
In a scheduled auction, the rights owner simply decides on three simple details...
The auction start date and time
The auction end date and time
(this can be anything from 1 hour up to 7 days.)
The item's starting price in BSV
Starting price is just the minimum amount requested by the seller in order to kick off the bidding process. A bidder can not bid less than the starting price. However, if you have just one bid, your item will sell.
A scheduled auction may be cancelled prior to its start, for example when it is counting down to ‘kick off’. However, once the auction has started, it can not be stopped, cancelled or undone. Be comfortable with your starting price. Rights owners that set scheduled auctions up must be prepared to sell their works at that price, if just one bid is received.
Timing of Auctions
If a bid is placed within the last 15 minutes of an auction, the auction time will be extended by 15 minutes from the time of the bid in order to accommodate last minute bids. The bid must be increased by at least $1.00 to extend the auction time.
Timed Auction Features May Be Subject to Error
Auction timing can sometimes be inexact on the blockchain. Auction timers only reflect an approximate start or end time in connection with a particular auction. Participants should get their bids in as early as possible to ensure that they are processed before the close of the auction.
The system is currently running on 5 minute quantization, meaning the auctions can only end at 5 minute points or intervals, but these points are all clearly displayed to the users. Since the function to end the auction can only be executed at 5 minute intervals, the auction ending time should strictly adhere to the time displayed.
Rules for Sellers
As mentioned, sellers decide on auction start time, end time and starting bid price (in BSV).
The artwork card then displays a timer counting down to the auction start. No bids can be placed during this ‘lead in’ period.
The auction starts at the scheduled time and the artwork page will also displays a timer counting down to the auction end.
The start price is the minimum bid amount.
The seller will be notified every time a bid is placed.
If a bid is placed within the last 15 minutes of an auction, the auction time is extended to 15 minutes after the time of the bid.
When an auction ends, it closes automatically. The net sale payment is sent to the seller, a commission payment is sent to MusicArt, and a royalty payment is sent to the rights owner, if the auction is a resale.
Also, a new record of ownership is written in the blockchain, confirming that the buyer is now the new owner.
Rules for Buyers
When the auction begins the artwork is open to bids. The buyer’s bid must meet or exceed the starting price. The bidder must pay with BSV.
If the buyer gets outbid, their funds will be returned immediately, however they can then always choose to place a higher bid.
If a bid is placed within the last 15 minutes of an auction, the auction time is extended to 15 minutes after the time of the last bid. However, the bid must have, at least, increased by $1.00 to extend the auction time.
At the end of the auction, the auction closes automatically. The net sale payment is sent to the seller, the commission payment is sent to MusicArt and the royalty payment is sent to the artist if it’s a resale.
Also, a new record of ownership is written in the blockchain, stating that the buyer is now the new owner.