What is a Dutch auction?
In the context of NFT art, a Dutch auction is a type of auction where the price of a digital artwork starts at a high price and is gradually lowered over a set period of time. Similar to traditional Dutch auctions, the price is lowered at regular intervals and the first buyer to accept the current price wins a piece from the auction. This method is used for both customer price discovery and to avoid blockchain network congestion, which increases transaction fees. The use of smart contracts ensures that the auction is transparent, and the transfer of ownership and payment happens automatically and instantly.