kaal:claim:4015908-037

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.

From

Wulf A. Kaal, Fair Token Launch (2022), IV.4 Lottery, p. 18
https://ssrn.com/abstract=4015908 · source PDF

Cite as

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

Verify

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