Art Blocks uses a variety of auction types and minters. In this guide, we’ll explain how these systems work, making it easier for you to participate in the exciting world of generative art on our site. Whether you’re new to our site or a seasoned collector, this guide will help you get familiar with key auction formats—starting with our latest, the Ranked Auction Minter (RAM). We’ve included a link to additional resources for more in-depth information about other auction styles and minters on Art Blocks at the end of this article.

Ranked Auction Minter (RAM)

Overview: In a Ranked Auction, the highest bids win. Bids are ranked from highest to lowest, and if two bids are the same, the earliest one gets priority. There are only as many winning bids as there are artworks for sale.

At the end of the auction, all winners pay the same price, which is the lowest winning bid. If your winning bid is higher, the extra funds will be automatically returned when your artwork is created.

Artwork is created (this process is also called ‘minting’) and sent to winners in the order of bid ranking (highest winning bid to lowest winning bid). If the auction ends with fewer bids than artworks in the auction, the remaining pieces will be available for purchase at a fixed price equal to the auction’s lowest winning bid.

Like other auction types designed by Art Blocks, ranked auctions are fully on-chain with fallback protections against centralization, aligning with our minting philosophy.

Placing a Bid and Minimum Requirements

Placing a Bid: RAM uses a special system designed by Art Blocks to keep transaction fees low by allowing bids only at 512 specific price levels. You can select a preset level to bid at and place multiple bids, even at the same price. When placing your bid, you can opt-in for email updates to get notified if you’re outbid, about final auction results, when your artwork is created, or for any additional claim opportunities.

Minimum Bid: If there are fewer bids than artworks in the auction, any new bid is accepted. If the number of bids matches or exceeds the number of artworks, new bids must beat the lowest winning bid by at least 5% (if it’s less than 0.5 ETH) or 2.5% (if it’s greater than 0.5 ETH).

Bid Changes and Return of Funds

Outbid Returns: If someone bids higher and your bid no longer qualifies as a winning bid, your funds will be automatically returned, and your bid will be canceled.

Bid Cancellation: Once submitted, bids cannot be canceled by the participant. They can only be canceled by the system if you’re outbid.

Increasing Bids: You may increase the price of your winning bid during the auction. The difference in price will be collected, and the bid’s timestamp will be reset.

Auction Timing and Post-Auction Process

Auction Extensions: Artists have the option to configure the auction to allow a 5-minute extension if a bid is placed in the last 5 minutes of the original end time. The total extension period will not exceed 60 minutes.

Auction Sold-Out: An auction sells out when the total number of winning bids equals the number of available pieces. Artwork will be sent to winning bidders at the wallet used to bid within 72 hours, starting with the highest bid.

Auction Not Sold-Out: If the total number of winning bids is fewer than the available items, the remaining artwork can be purchased at a fixed price equal to the auction’s lowest winning bid. Post-auction buyers can choose to send the artwork to any wallet.

Price Settlement: At the end of the auction, all winners pay the same price, which is the lowest winning bid. If you bid more than that, the extra amount will be returned to the wallet you bid with.

For further information on Art Blocks Minter Suite, visit our docs here.