In a lottery fair launch protocol, a user who bids low for a ticket increases the potential secondary market return but decreases the chance of winning the lottery, because more users can afford to participate at a low price.
Source quote, verbatim
user bids low, they increase the potential for secondary market return but decrease their chances of winning the lottery since more users can afford to participate.
Wulf A. Kaal, Fair Token Launch (2022). SSRN: https://ssrn.com/abstract=4015908
Holds when
lottery based fair launch protocol
price determined by community bids
Classification
mechanismsupport: arguedeconomics
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