A Fixed-Price Tender in crypto refers to a method of acquiring or distributing digital assets where the offering party sets a specific, non-negotiable price per unit for a predetermined quantity. This mechanism contrasts with dynamic pricing or auction-based methods, providing price certainty for participants.
Mechanism
The mechanism involves an issuer or seller publicly announcing a fixed price at which a specified amount of tokens or assets will be made available. Interested buyers then submit commitments for the quantity they wish to purchase at this fixed price. If the total demand exceeds the available supply, allocation typically follows a pro-rata distribution or a first-come, first-served basis, as stipulated in the tender’s terms.
Methodology
The methodology aims to provide price certainty for both the issuer and the participants, simplifying the price discovery process compared to volatile market mechanisms. It offers a structured and transparent approach for capital raising or asset distribution, providing clarity for investors in a potentially unstable crypto market, often utilized in initial token sales or structured institutional offerings where a stable price point is desired.
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