> For the complete documentation index, see [llms.txt](https://dungeonbound-lab.gitbook.io/chiblets/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://dungeonbound-lab.gitbook.io/chiblets/auction-system.md).

# Auction System

The **Auction House** introduces a high-stakes, competitive layer to the Chiblets economy. Unlike the regular **Marketplace**, which allows fixed-price trades, the Auction System enables players to **bid against each other** for rare and exclusive assets.

This creates scarcity, drives excitement, and ensures that the **$CHIBI token continuously decreases in circulating supply** through complete token burns.

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### **Auction Assets**

The Auction House focuses on **exclusive and limited assets** that cannot be easily obtained through adventures or the standard marketplace.

| **Asset Type**           | **Description**                                                                                                                                                  |
| ------------------------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| **Artifacts**            | Special equipable items that increase Chiblet stats (e.g., +5 Strength, +3 Speed, +8 Stamina). Each artifact has unique effects, encouraging diverse strategies. |
| **Rare Chiblets (NFTs)** | Unique Chiblets with rare genetic traits, limited supply, or seasonal exclusivity.                                                                               |
| **Legendary Resources**  | High-value crafting materials that are only obtainable via auctions.                                                                                             |

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###  **Auction Mechanics**

* Auctions run for **limited-time events** (e.g., 24–72 hours).
* Players **bid $CHIBI tokens** for the desired asset.
* At the end of the timer, the **highest bidder wins** the asset.
* **100% of all $CHIBI tokens spent in auctions are permanently burned**.

This ensures that every auction contributes directly to reducing the circulating token supply, strengthening scarcity and long-term value.

***

### **Example Flow**

1. A **“Blade of Eternal Flame” Artifact** is listed in the Auction House.
2. Players bid progressively higher amounts of $CHIBI to secure it.
   * Player A bids 1,000 $CHIBI
   * Player B bids 1,500 $CHIBI
   * Player C bids 2,200 $CHIBI
3. The auction ends — Player C wins the Blade.
4. The **2,200 $CHIBI tokens used in the winning bid are burned permanently**.
5. Circulating supply drops, increasing long-term scarcity of $CHIBI.

***

### **Economic Impact**

* **Deflationary Effect**: Since **100% of tokens are burned**, auctions act as powerful economic sinks.
* **High Engagement**: Auctions create excitement, speculation, and competition among players.
* **Prestige Value**: Owning rare artifacts or exclusive Chiblets boosts player status and competitive advantage.
* **Cycle of Demand**: Players farm/craft/trade in the marketplace to accumulate tokens → they then use tokens in auctions → tokens are burned → token value increases → demand for farming rises.

***

### **Auction House Vision**

The Auction House is designed to be:

* A **premium system** for distributing rare content.
* A **deflationary powerhouse** ensuring $CHIBI maintains long-term scarcity.
* A **community-driven spectacle**, where each auction feels like an event, not just a transaction