previously registered names have to go up for auction. If it’s first come, first served then in demand names will just keep being purchased and then immediately resold over and over again. This will introduce more than one problem.
case:
( as an example and not the actual name. )
‘ens.eth’ expires. grace period is over.
bot snipes the name. at cost price is paid.
registrant immediately lists name for 1Eth.
bot snipes the name and then listed for 2Eth.
bot snipes the name and then listed for 3Eth.
bot snipes the name and then listed for 10Eth.
bot snipes the name and sits on it and does not use the name.
opens up a process for money laundering.
creates unfair advantage for almost everyone.
creates an unrealistic value.
will increase floor price across ENS.
it’s great if you know solidity and can code the best bot and have tons of money.
will push newcomers away.
could cause a mad rush and flood of people trying to sell names like “hdidbrjdhebridgeb.eth’ for ridiculous prices.
again and again…
but its not first come first served, very shortly new starting grace price will come in effect and it will be live dutch auction
anything on opensea is open for that, its not up to ENS to decide on this and tackle this
will be fixed with new higher starting price of 100kUSD
the problem is not that it can’t be fixed, the problem is that community is looking is more elegant solution than dutch auction
a lot of alternatives were discussed, and some of the drawbacks you need to consider also the complexity of system, it can prohibitively expensive in terms of gas, or it can be prohibitively difficult to use such as Vickrey auction
I think the main goal is to make it efficient in terms of technical implementation, user friendly, and be effective mechanism. Right now I personally don’t see any alternatives to Dutch auction.
Community is open to having a different mechanism, but it is yet to be discovered, I was thinking very hard about this problem myself and couldn’t find immediate solution. Moreover I experienced Vickrey auction hands on back in a day before 2019, and it was very difficult to use. Also you need to consider that the more complex auction mechanism the easier it will be for tech savvy people to game it.
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