What is the bidding process?

Via Vickrey auction functionality, each protocol is given its auction mechanism for acquiring the corresponding BNS. The bidding process is governed by the following four steps: (1) startAuction (2) newBid (3) unsealBid (4) finalizeAuction.

startAuction: Someone opens an auction for the desired domain name and places a bid.

newBid: Others have a 3-day timer to place their bids on the name. The details are obscured during this period, which means no one knows how much you bid.

unsealBid: Follow by a 2-day "reveal" period, every participant must unseal the details of their bid, and if you don't, you will lose your entire bid. Bidders will get their refund back with a bit fee cost if not winning.

finalizeAuction: The person who placed the highest bid is the winner, but instead of paying the highest price, the winner only has to pay the amount of the second-highest bidder. As long as the winner retains control of the domain, this amount is locked up in the contract. The winning bidder must send a "finalize" transaction to receive a refund of any extra funds and be assigned control of the domain.