IPO
In the world of finance, an Initial Public Offering (IPO) refers to the process of offering shares of a private corporation to the public in a new stock issuance. In the Qubic universe, this concept has been creatively leveraged to facilitate the distribution and trading of digital assets on the Qubic network.
Every time an IPO auction is carried out, all QUs will be burned. When the Qubic ecosystem becomes increasingly rich, the number of IPOs conducted will increase, which will greatly reduce the supply. Currently, about 11T Qubic have been burned.
Qubic's First IPO
The first IPO within the Qubic network was that of a Decentralized Exchange (DEX) known as Qx. An innovative application of Qubic's smart contract technology was used to distribute 676 shares of Qx. This marked a significant milestone for the Qubic project, as it demonstrated the potential of Qubic's smart contracts for creating and distributing digital assets in a decentralized manner.
IPO Process in Qubic
Here's a brief look at how an IPO works in the Qubic network:
- Creation of Shares: Using Qubic's smart contract technology, a digital asset (like shares of a DEX) is created. This asset is unique and can be traced on the Qubic blockchain.
- Offering to the Public: The digital shares are then made available to the public. Just as with a traditional IPO, these shares represent a stake in the project and may provide certain rights to the holders.
- Purchase and Trading of Shares: Participants on the network can acquire these shares using QUs. Once purchased, these shares can be traded on the Qubic network.
When there is an IPO active, you can bid through Web Wallet: Qubic - Wallet
And view the bidding status in real time through this page: qubic.li - Live
The Significance of IPOs in Qubic
The successful execution of an IPO within the Qubic network underlines the adaptability of blockchain technology to traditional financial processes. By providing a decentralized and transparent platform for conducting IPOs, Qubic brings a new level of accessibility and openness to the creation and distribution of digital assets.
Moreover, the ability to conduct an IPO using Qubic's smart contract technology demonstrates the robustness of the network's infrastructure and its suitability for a diverse range of financial applications.
In the Qubic ecosystem, Dutch Auctions are integral to the Initial Public Offering (IPO) of smart contracts. By utilizing a Dutch auction mechanism, Qubic ensures a fair and transparent bidding process where the highest bidder acquires the offering. This method allows participants to bid at the price they believe the offering is worth, potentially leading to a more accurate valuation compared to traditional methods.
Dutch auctions are part of Qubic's commitment to create a democratic and open environment, where market forces determine the price of offerings and every participant has an equal opportunity to contribute and benefit from the network's growth. This approach promotes fairness, inclusivity, and efficiency within the Qubic community.
Example
As an example: 10 shares are available overall:
| Bidder wants to pay | QU per share for | Amount of shares wanted |
|---|---|---|
| Alice | 300 | 5 |
| Bob | 7 | 10 |
| Charlie | 90 | 3 |
These bids are sorted by price, from highest to lowest:
| Bidder wants to pay | QU per share for | Amount of shares wanted |
|---|---|---|
| Alice | 300 | 5 |
| Charlie | 90 | 3 |
| Bob | 7 | 10 |
Now we go through line by line and sum up:
| Bidder wants to pay | QU per share for | Amount of shares wanted | Sum of shares neede |
|---|---|---|---|
| Alice | 300 | 5 | 5 |
| Charlie | 90 | 3 | 8 (5+3) |
| Bob | 7 | 10 | 18 (5 + 3 + 10) |
We exceed the number of available shares (10). The lowest offer still getting shares is 7 QUs
As a result, the final distribution is as followed:
- Alice gets 5 shares and pays 35 QU
- Charlie gets 3 shares and pays 21 QU total
- Bob gets 2 shares and pays 14 QU total