Cellframe auctions, what are they?

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Cellframe auctions what are they, how do they work, can you buy them? My name is Rico Richardson and I’m this post, I’m going to tell you all about it.

Background

A few weeks ago I made a Cellframe video talking about what it is, how to get it, and why it might be an interesting project. One of the things mentioned was the Cellframe auctions. After that video I’ve gotten a lot of positive feedback but there was also one question that kept popping up: “How do the auctions work”? Hence the reason Cellframe and I joined forces to answer this question for you. This video is sponsored by them but rest assured that all opinions are my own and just to be clear, this video should also not be used as financial advice because I am not a registered financial advisor. Never invest money you cannot afford to miss because there is nothing as volatile as crypto. Now that we’ve got that out of the way, let’s talk about the auctions!

Cellframe auctions

Before we kick off this chapter on the Cellframe Auctions, let me quickly tell you what Cellframe is. Cellframe is a service orientated blockchain. It’s a quantum resistant software which wants to build a blockchain, on which other users can build a blockchain.They designed Cellframe’s architecture to have a two layer sharding. The level 1 cellframe, is a heterogenous network. This means that they all have their own structure. It could be possible that a network doesn’t have a level 2 shard level. All networks have their own sharding and a project can decide this for its own whether or not if they deem this necessary. They just need to make sure that they keep using compatible protocols with the core network. Then the second level, is called a homogenous level. On that level all shard are the same. This is what they call Cells. So the top level is the network, and the second level is called cells. On level 2 they all have the same structure and the physical tokens are merged together into logical tokens. All tokens that appear on Cell, can only appear through atomic swaps. This means that transactions that have been closed in other shards, produces a new transaction in the current cell. It doesn’t have to be its own token because all tokens are connected throughout the network. Due to these interoperability features they want to build an ecosystem of services in which peer 2 peer exchange between apps will be possible. They don’t like to call themselves a blockchain technology but rather an infrastructure layer for building a blockchain ecosystem. Cellframe is built from scratch with plain C, which results in more efficient utilization of CPU and memory.

Now, finally after weeks and for some people months of waiting, the Cellframe auctions went live! Cellchain auctions are held in the form of draws of Cell Slots. Each Cell Slot will be represented as a specific project owner NFT token. This token can be sold on the market or used for its intended purpose. When used for its intended purpose, it will be transferred to a special smart contract, from where it can be picked up on request within a week — this is necessary so that the Cell Slots do not connect unexpectedly and the system has time to prepare for changes.

Now in order for you to understand this mechanic, I need to quickly explain what NFT’S are. NFT stands for Non Fungible Token. NFT’s are non fungible tokens. Fungibility refers to items that are replaceable for the exact same item. Which means that non fungible tokens cannot be replaced. There is only one of them. Think of an original Van Gogh or one of a kind legendary Pokémon card. NFT’s are the one of a kind assets in the digital words. Examples are crypto punks, Sol Bears, Pixel Dudes etc. The digital tokens can be thought of as certificates of ownership for virtual assets (such as in-app items and digital art) or physical assets (such as real-life paintings and even houses). So these NFT will show that you are the rightful owner of that particular Cellframe slot.

There are a maximum of 50 Cellframe slots that can be auctioned. In theory, these slots could be bought by people like you and me, but if you don’t have a project you cannot use it as intended. Which means you could buy one of these slots with the idea to resell it or if you want to build a project of your own. However, please keep in mind that Cellframe will audit the slot sale to see if they are eligble to be used by that specific party.

To mint a Cell Slot NFT, it is necessary to issue a special smart contract, where the auction participants will have to upload a certain amount of CELL paired with the token of their project. If successful, these funds would be locked for 2 years. How this works is that the contract is deployed by cellframe themselves, and then they send it to the auction primary contract and then connect it to the winning party. In exchange, they can receive tokens. Examples are governance tokens, project tokens or native tokens for airdrop. Cellframe does not pay out rewards for bidders, but the question whether or not rewards should be handed out is up to the project team themselves.

Auction procedure

So now let’s look at the procedure of the auction. There are 50 cellframe slots, played at random and Applicants for Cell Slots deploy contracts and either upload their funds there, or call on their community to collect in exchange for the release of their tokens. The auctions have an average duration of two weeks but there isn’t a time specified for this.

When an auction is finished, it connects to Chainlink and obtains random numbers from Chainlink and uses it to finish the auction retroactively. All bids that come after that, can be claimed back. If you lose the bid, you can claim it back as well. When the auction has ended, an NFT token will be send to the winners owner or claimed by the project owner. The winner obtains cell slots, that allows them to connect their network to the core backbone. A project can occupy more than one slot. This can come in handy when a project needs a bigger bandwith. These slots can be purchased for 250.000 CELL.

Auction rules

On october 11th, the first ever Cell auction has begun and the auction consists of 6 rules. The first rule, is that the end of the auction is determined by the expiration of the candle flame. This is done particularly to prevent people from making last second bids. There are 4 requirements to enter the auction, which is rule number two. These are project name, briefing what the project is about, website and a deposit of 1000 cell. This deposit will be returned after a win or loss in the auction. Rule number three has to do with the range of the slots. They range from 1 to 8 and subsequently give out scores. Basically this means if you place a 5 dollar bid on the range of 1 to 8, you have a score of 30. If you place a bid of 10 on the range of 1 to 3, you score 30. This means that the person who has bid less will win, because he used a bigger range and thus giving him a higher score. The range points equal three months each. Rule number 4 is that a project could be crowdloan or private. In case of crowdloan everybody can bid on it, receiving project tokens (usualy governance but thats up to project’s owner) for locking their #CELL tokens in. Onto rule #5! The winner gets the Cellslot NFT with a unique number. They can use it for themselves or resell it. However, the one that purchases this slot will be reviewed by the cellframe team to see if they are eligible for holding it. The final rule, which is number 6 is that to get a slot for two years, participant must collect at least 250’000 CELL. Minimal is 3 month period (31’250 CELL).

All this time CELL will be locked.

Hopefully this cleared some of your questions about the cellframe auctions up.

To end this video, I want to let you all know that Cellframe has its own wiki page. On this wiki page which is constantly in development, a lot of information and links on the project can be found. It’s definitely worth checking out if you have any questions regarding the project or its auctions. Keep in mind though, I’m not a registered financial advisor nor is this video ment as financial advice. Never invest money you cannot afford to lose because there is nothing as volatile as crypto. For now, my name is Rico Richardson, thank you for reading, and I’ll see you next time. Doei!

Few thousand is left, rest is sold. Development funds won’t be touched.