Trustlines Validator Auction

The Trustlines validator auction is used to determine the first set of validators for the Trustlines Blockchain. The first set of validators will be valid for nine months. To participate in the auction, a whitelisted Ethereum address has to bid by sending ETH to the auction contract after it has started and before it has ended. The amount must be greater or equal to the current price.

If you have been accepted as a validator candidate, please read the following information and instructions with great care.

ETH WEI
Slot Price
Bid Price

Remaining Time

Free Slots

Max. Slots

Taken Slots

Min. Slots

0x7255E01F934307FfB7a41FC78B6b1688f5dc6845

Remember to increase the transaction gas.

Contract Address

Lowest Slot Price

  • The Trustlines validator auction is a smart contract on the Ethereum main chain. The Trustlines Foundation is going to trigger the start of the auction at a provisioned date and time by means of sending a transaction.
  • The auction defines a price per validator slot starting at 10,000 ETH that, during the course of the auction, continuously decreases according to a specified function. After two weeks, it reaches 1 ETH / validator slot.
  • Access to the auction is restricted: Only accounts that have been whitelisted by the Trustlines Foundation prior to the start of the auction are eligible to participate in it and each whitelisted account can only participate once.
  • To participate in the auction, a whitelisted Ethereum address has to bid by sending ETH to the auction contract after it has started and before it has ended. The amount must be greater or equal to the current price.
  • The auction ends with the 55th bid or after two weeks counted from the start time, whichever comes first. The number of participants at the end defines the result of the auction: If 20 or more accounts have participated it is successful, otherwise, it has failed.
  • If the auction has failed, all participants can withdraw the entirety of the ETH they sent by calling the auction contract's `withdraw` function. However, participants will not be granted the status of a validator on the Trustlines Blockchain.
  • If the auction is successful, the price of the last bid is defined as the "slot price". Every participant can withdraw the difference between the slot price and their bid by calling the withdraw function. Participants will be granted the status of a validator on the Trustlines Blockchain. All ETH that can not be withdrawn will be transferred to the deposit locker contract and be kept there as a stake for nine months.

The following documentation is a step by step guide for participating in the Trustlines validator auction. Important security notes:

  • Beware of Scams
    • Scammers may target the Trustlines Network community. Make sure to check the monitored communication channels.
  • Please do not...
    • Enter your private key on one of our websites.
    • Publicly reveal your identity.
    • Privately send cryptocurrency or FIAT payments via a direct message to anyone that asks for this.

Disclaimer

Please note that even though we do our best to ensure the quality and accuracy of the information provided, this publication may contain views and opinions, errors and omissions for which the content creator(s) and any represented organization cannot be held liable.

The wording and concepts regarding financial terminology (e.g. “payments”, “IOU”, “currency”, “credit”, “debt”, “transfer” [of value]) are exclusively used in an exemplary way to describe technological principles and do not necessarily conform to the real world or legal equivalents of these terms and concepts.

Official communication channels

Protect yourself from phishing attacks by bookmarking the official Trustlines communication channels:

Participation requirements

  • Make yourself familiar with how the Trustlines validator auction works. Visit the auction.trustlines.foundation website and watch the Trustlines Auction Explained video.
  • Make sure you have been accepted and signed up as a Trustlines auction validator candidate.
  • Make sure you have whitelisted your ETH address.
  • Use a wallet where you can specify a gas limit. This documentation uses MetaMask.
  • Make sure the auction is started and ongoing. Go to the website and look at the remaining time for the auction. If a remaining time is displayed and counting down, the auction is ongoing.
  • Otherwise, a text such as “Not Started” or “Finished” will describe the status of the auction.
  • Alternatively, you can observe the starting time of the auction on the graph.
  • Look at the current slot price. You can see this in the auction website on the bottom right as shown on the screenshot.

Make a bid

  • To bid in the auction, you need to send a transaction to the auction contract with enough gas and an amount of Ether that is greater or equal to the current slot price.
  • Any excess Ether will be refunded later. You can find the auction contract address on the website.
  • You may need to go to the “Advanced Options” to set the gas limit by yourself.
  • MetaMask will use the default gas limit of 21,000, which is too low. We recommend a gas limit of 400.000. Note that this is a limit and setting it too high has no consequences on the effective price of the transaction while setting it too low may cause the transaction to fail.
  • You can leave the gas price as suggested by MetaMask.

Confirm the bid

  • Use Etherscan or your wallet to confirm that the bid was successful.
  • If the bid was successful, the transaction will be displayed as “Confirmed”:
  • Use the auction website to see your bid shown on the graph, as illustrated in the screenshot below.
  • To see the details of the transaction, hover over the point corresponding to your bid.
  • Wait until the auction completes before following further steps in the documentation.

 

 

Determine the auction’s outcome

The auction can end with three different results.

  • Case 1: The number of bidders reaches 55. Regardless of the time remaining in the auction period, nobody can bid anymore and the auction is over. The final price of the auction is the price of the last bidder.
  • Case 2: The two weeks for the auction are elapsed and the number of bidders is between 20 and 54 included. The auction is successful and the number of validators is equal to the number of bidders. The final price of the auction is the price of the last bidder.
  • Case 3: The two weeks for the auction have elapsed but the number of bidders is below 20. The auction is deemed failed and no bidder will become a validator. Bidders will be able to withdraw their whole bid.

In all three cases, the instructions for withdrawal are the same as described in section 2.2. In case 1 & 2 the auction contract will calculate and refund the difference between the bid price and the final slot price. In case, 3 the auction contract will return the full bid amount.

Make a withdrawal using Etherscan

Once the auction contract is set in the “Ended” or “Failed” state, users can withdraw their overbid by calling the “withdraw()” function on the auction contract with the address used for bidding.

  • To do that, go to the auction contract on etherscan: https://etherscan.io/address/0x7255E01F934307FfB7a41FC78B6b1688f5dc6845
  • Click on “Contract” and “Write Contract” then “Connect to Web3” to be able to send a transaction to any public functions of the contract via your Web3 interface.
  • You can then click on “Write” under the “withdraw” function to send a transaction to the contract withdrawing your overbids.
  • This will open your Web3 interface asking you to sign the transaction. Once the transaction is successful, you should receive your overbid and your participation in the auction is over.

(Optional): Detailed procedure for closing the auction manually

Before a withdrawal is possible, the auction contract needs to be put in a withdrawal state. This can be done by anyone, but will most likely be done by the Trustlines Foundation. To do this by yourself, determine the correct case and follow the instructions below. Note that these instructions will not work if the auction is ongoing.

  • Case 1: After reaching 55 bidders, the auction automatically goes to the “depositPending” state. The deposits must be transferred from the auction contract to the locker contract used for holding stakes. This is done by calling the depositBids() function on the contract. The contract will then be in the “Ended” state where users can withdraw their overbids.
  • Case 2: After two weeks, no one can bid in the auction anymore, the auction needs to be closed by calling the closeAuction() function. Deposits need to be transferred from the auction contract to the locker contract used for holding stakes by calling the depositBids() function. The contract will then be in the “Ended” state where users can withdraw their overbids.
  • Case 3: After two weeks, no one can bid in the auction anymore, the auction needs to be closed by calling the closeAuction() function. The contract will then be in the “Failed” state where users can withdraw their whole bids.