Dynamic Auction Algorithm

Description

The Dynamic Auction Algorithm is a new option for projects in the Nouns ecosystem to consider for their issuance rate. Rather than a static issuance rate, projects can set a target sale price and let the auction duration fluctuate based on demand. The algorithm adjusts auction duration based on recent demand, increasing it until demand meets supply and the sale price surpasses the target, or decreasing it if demand is high. This algorithm offers benefits such as the ability to adjust supply to meet demand, seasonal demand readiness, and price targeting. The ATX DAO is building ATX Nouns and plans to use the Dynamic Auction Algorithm to solve issues such as determining how many members to onboard and dealing with seasonal demand.

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