FAQs – Fetch.ai CoLearn pAInt 

Aug 24, 2021

We have compiled a list of FAQs relevant to the Fetch.ai’s NFT Platform (CoLearn pAInt)

#How does the Dutch Auction for the fetch collective art project work?

At a Dutch Auction, prices start high and are dropped successively until all the slots are sold. Once all the slots are sold, the auction ends.

The aim of the dutch auction is to allocate all the slots for participating in the fetch.ai collective art event.

The auction starts at a specified block height say 100 and runs for a defined number of blocks. A new block gets mined about every 13 seconds, so if you say the “auction ends after 40 blocks”, that’s equivalent to about 10 minutes.

The asking price starts high and then decreases linearly until the end of the auction. So if the asking price starts at 9000 $FET and ends at 1000 $FET then half way through the auction the current asking price will be 5000 $FET.

You can bid at any point, but your bid needs to be over the current asking price. So if the current asking price is 5000, then 5000, 5001, 7000, 10000 and 13243 would all be valid bids. But anything less than 5000 would be an invalid bid and would be rejected.

Once the auction closes, the price of a slot is finalised. Then the number of slots that each user gets is finalised. The bidders are allocated slots based on the amount of their bid divided by the final slot price. There’s only a fixed number of slots, so the slots might run out before they get the later bidders. To see how this works, look at the following example.

Imagine that the final price of a slot is 1000, and there are ten slots, and the following bids were entered:

b1: 4000
b2: 5500
b3: 4000
b4: 1000

The first bidder would be allocated 4000/1000 = 4 slots. The second bidder would get 5500/1000 = 5 slots and 500 $FET leftover. But now there’s only 1 slot remaining. So the third bidder would get one slot, and the fourth bidder wouldn’t get any slots.

The $FET you’re bidding is locked up until the event is over. We want to clarify this because the entire process (from auction to building to voting on the art and ending with selling the art on OpenSEA is allocated a month but should the phases get over quicker, the entire process will take less time and the sooner your $FET will be unlocked”. We are also making sure we involve our community members from all time zones hence inclusivity is important. Therefore only bid an amount you’re comfortable having locked during the process.

After the lockup ends you can withdraw your $FET, and you get your share of the proceeds from the art sale.

#What’s a slot? Why do I want one?

You can think of slots as being like tickets that do two things: firstly they let you participate in the art generation and secondly they give you some of the reward at the end.

Everyone with at least one slot gets to participate in the art generation. Because there are only 200 slots available and the traffic we are expecting on the opening day requires you to move fast and bid an amount that is most likely going to get you a slot. If you do not receive one, it is not a technical defect but more a matter of luck as someone might have bid a higher price.

Once this collaborative process finishes the three final artworks most voted on are declared as winners and turned into NFTs and auctioned on Opensea. The proceeds from this sale are shared out between the users based on the number of slots they have. The more slots you have, the higher the proceeds from the sale for you.

#So if the price decreases then I should bid later, right?

Nope! This is for two reasons.

The first reason is that everyone is allocated slots based on the final price, not the price when they bid. So if you placed a bid of 4000 when the price was 4000 but the final price was 1000 then you would get four slots, not one slot. So there’s no downside to bidding earlier.

The second reason is that the final slot allocation goes in order of bidding, and there’s only a fixed number of slots, so the slots can run out before you get to the later bidders. Imagine that the final price of a slot is 1000, and there are ten slots, and the following bids are received:

b1: 4000
b2: 5000
b3: 4000
b4: 1000

The first bidder would be allocated 4000/1000 = 4 slots. The second bidder would get 5000/1000 = 5 slots. But now there’s only 1 slot remaining. So the third bidder would get one slot, and the fourth bidder wouldn’t get any slots.

#Do I get my $FET back?

Yes, once the event ends you will get back all the $FET you bid, and you’ll also get your share of the rewards from the art sale, proportional to your slots.

#Can I only use Metamask and not other software wallets?

We recommend Metamask for this platform. Our test-runs have shown it to be the most effective software wallet for this CoLearn Art platform.

#Really cool but I have one problem — why do I need to have my $FET (which I bid) locked away for an entire month? I am not a whale and I need them.

To earn some proceeds from the auction once the art is sold on OpenSea, you have to have some skin in the game.

#What happens if there’s leftover $FET once my number of slots is calculated?

If you bid 4500 and the finalised slot price is 1000 then you would get 4 slots, and 500 FET leftover. You can claim back the leftover FET as soon as the auction is finalised — there is a button for it on the art website.

#What happens if I bid 10x the current asking price?

The number of slots you get depends on the finalised price of a slot and how many people have bid before you. So if you bid 10000 $FET and the final bid was 1000 $FET, you’d probably get at least ten slots.

#What happens if I bid less than the current asking price?

Bids that are less than the current asking price will be rejected.

#When do I get my $FET back?

The lockup will end on the 24th of September.

#How much does bidding cost?

We definitely do not control the gas fees — we just thought we will make that clear at the onset.

There is an ethereum gas fee to pay for placing a bid. This depends on gas prices, but is about 0.80USD. There is also a gas fee that has to be paid for withdrawing the leftover $FET from your bid (0.10USD), and for withdrawing your $FET you bid during the auction at the end (0.10USD).

0.80 USD and 0.10 USD are approximations but are subject to change (higher or lower) depending on the gas fees on a particular day.

We can though tell you how to save on gas — pro tip: once the winners are announced and the NFT is auctioned on OpenSEA, you can withdraw the leftover $FET and your bid in one transaction and therefore there’s only one gas fee.

#Why should I join in?

Two reasons:

  1. Be a part of a unique creative event. You’re creating art with a lot of people online and helping our proprietary machine learning algorithm learn and create art based on the patterns you feed. This is quite cool if you think about it.
  2. You create art and you can also earn from it! You will get a share of the proceeds from the art sale.

Imagine that there are ten slots available (in reality we are offering 200 but for this example we imagine 10), and the participants got them as follows:

p1: 3 slots
p2: 5 slots
p3: 2 slots

All three participants take part in building and voting on the art. Once the three final artworks have been generated Fetch.ai mints them as NFTs and puts them up for auction on OpenSea. The proceeds from that sale are divided between the participants based on their number of slots, with a small share reserved for Fetch.ai.

If the final proceeds from the auction are more than 4000 $FET, then the distribution could look like this (after Fetch.ai takes its cut):

P1: 1200 $FET
P2: 2000 $FET
P3: 800 $FET

#So I could successfully place a bid, but I might not get any slots?

Yep, you’ve got to be quick! In the final allocation of slots, the people that bid first will be allocated slots first, and the slots might run out. Imagine that the final price of a slot is 1000, and there are ten slots, and the following bids are received:

b1: 4000
b2: 5000
b3: 4000
b4: 1000

The first bidder would be allocated 4000/1000 = 4 slots. The second bidder would get 5000/1000 = 5 slots. But now there’s only 1 slot remaining. So the third bidder would get one slot, and the fourth bidder wouldn’t get any slots.