How does the settlement happen after a Flamingo Handshake auction?
This is the typical flow:
Point 1: Do you require to use Namebase to purchase?
Some in the HNS community have no other choice (due to US regulations) other than to use Namebase. Or you simply prefer to buy on Namebase. So if this is the case, then we ask if you would mind to add the 3% Namebase fee on top of the final price. We leave this as an option for you, so that the 3% is not passed on to the seller and to the foundations where the proceeds are going. Most are adding the 3% and we will give you 2 choices for the offer to send in.
If Choose Namebase for Payment:
Once you tell us you will use Namebase, we then need to transfer the name to another Namebase account for settlement. Please await our instruction and confirmation that we have the name in a Namebase account, and then you can send the offer.
We will provide 2 prices (one with 3% Namebase fee added, other without), but if you notice, there is a “secret” decimal place amount. This secret amount is so that once you send in the offer, we as the escrow know it is from you.
Imagine another buyer missed the auction, or decides later they want this name and would pay the same amount. If they send in the offer, and you send in the offer, for the exact same amount (ending in .00) - we as the escrow would not know which to accept as we cannot see which buyer is sending the offer.
So we came up with this concept of adding a random amount in the decimal place.
If Choose OTC (Over the Counter) / Bob Wallet For Payment
If you are willing/able to use OTC, this is easier. It also allows us to settle on the seller side faster and easier. So thank you in advance for being willing or able to use this method.
We will provide you a HNS wallet to send the wallets to. We do not need to add the decimal place, as we will know the fund came from you (you can provide a TX hash). We will then send the name to that HNS wallet.
If you prefer, we can also send (gift) to your Namebase wallet instead.
Note, this will be up to 288 blocks (or more if going into/out from Namebase).
Paying In Other Crypto? ETC, BTC?
We have settled in other cryptocurrencies over the past year of auctions. It is on a case by case basis, and the sale price needs to be significant for us to consider it.
It is up to the full discretion of the Flamingo Handshake settlement team.
If needed, we will discuss with the seller if they would like to receive their funds in that alternative crypto currency. The foundations and other parties would receive whichever cryptocurrency we at Flamingo handshake ultimately choose.
The exchange rate would be the conversion rate from CoinGecko at the time of the start of the auction (the entire auction event, so 4pm PST of that day) .
This process may be modified and is an experimental feature.
Paying for Sets
We are in early stage experiments auctioning off lots / sets. If you are using Namebase for settlement, we choose the higher value TLD in the set as the item to sell, and then gift the other pieces of that set, rather than dividing them up and selling each separately.
Once All Funds Settled - We Pay Out Sellers and Foundations
We want to ensure all of the auction is complete before paying out. This is in case any buyers disappear, or other issues arise. We want the community to stay together in this and support on a full settlement of the complete auction.
What Happens if a buyer Disappears?
So far there has (knock on wood) not been an issue where a buyer did not complete their purchase. Even with all the anonymous people as usernames, they are normally fast to settle. The times there were delays (longest was 2 weeks!) was due to opening of accounts and getting HNS. We can only expect there to be a time when a buyer disappears.s If this happens, our plan then is to go to the second highest bidder as their bids are binding. We would then of course blacklist that buyer who disappeared and potentially make the attendance process to the live auction more paperwork and rigorous.
Let’s not let this happen and keep only real bids in the auction.
FH Buyer Settlement Workflow
This would then allow anyone on the internet to buy the name.
We do want to use more ShakeDex tools , and the Name claim process, but esentially Flamingo Handshake is the trusted escrow platform.