RWA Auction Mechanics
- Race Car Units: Each unit represents a fraction of an actual race car.
- Rental Returns: Share owners receive annual rental returns based on the cars’ performance in championships.
- Game Returns: Players earn rewards based on their performance in the game.
- Betting returns: Players can bet on the results of real races and earn rewards.
Auction process
- Asset list: RWAs available for auction are listed with their current values, annual rental yields, past gaming yields, and betting yields.
- Auction period: Players can bid on RWAs during a defined period (e.g. one week).
- Bidding: Players can place bids using $Rboyz tokens.
- Auction end: The auction ends at the end of the defined period. The player with the highest bid wins the RWA.
- Transfer of ownership: The RWA is transferred to the new owner, and the rental, gambling and betting yields are updated accordingly.
Payment of capital gains in advance
- Early Payment Option: Sellers may elect to receive a portion of the capital gains returns in advance, before the end of the auction period.
- Early Payment Rate: A fixed rate is applied to the capital gains yields to determine the amount to be paid in advance.
- Prepayment conditions: Sellers must accept the prepayment conditions before receiving payment.
Example of prepayment
- Current RWA value: $10,000
- Annual Rental Yields: 12% APY
- Past Game Yields: 5% APY
- Paris Yields: 3% APY
- Prepayment rate: 20% of capital gains on yields
- Prepayment: $2,400 (20% of $12,000)
This RWA auction mechanic allows sellers to sell and receive capital gains on returns early, while providing incentives for players to actively participate in the game and invest in real assets.