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7.2.2 Dutch Auction
The Dutch auction is an auction system that can be used to create a fair secondary market for these tokens. This system works by setting a starting price for a token, which is lowered over time until a bidder is willing to purchase it at the current price. This ensures that all bidders have an equal chance at purchasing the token, and that the final price is determined solely by the market.
Using the ERC 3475 token standard, it would be possible to create a whitelabel secondary market for financial products using the Dutch auction system. This would allow investors to purchase financial products on the blockchain, with the assurance that the tokens will be bought and sold at a fair market price. Furthermore, the whitelabel nature of the platform would allow it to be customised to meet the needs of a particular financial product, ensuring that the trading process is tailored to the product’s specific requirements.