Project Creation and Fundraising

Quantum Organizations crowdfund capital through Continuous Clearing Auctions (CCA), a mechanism designed by Uniswap. It's a multi-day auction where tokens release gradually and prices are discovered continuously.

Umia allows you to fully customise the parameters for both your auction and your future organisation. This makes sure that your desired crowdfund can reach the desired targets, scope and tokenomics.

Setting Up your Parameters

When it comes to setting up your auction, there are various criteria that can be modified to decide the key criteria of the raise, including:

Beyond the Auction criteria, Umia allows you to also specify the Quantum Token's general tokenomics and parameters. One key criteria worth focussing on is the Token Disbursment , which will be the monthly allowance granted to the executing team. This gives the team a baseline budget that does not require a Decision Market to be approved, allowing for smooth operations and reducing unnecessary proposals.

The Advantage of CCAs

In Continuous Clearing Auctions, tokens release over time in buckets, each with its own clearing price. Earlier buckets tend to have lower prices, rewarding people who commit early.

This differs from some of the most common auction methods in the space: Dutch auctions punish early participants; Fixed price sales lead to either a rapid sellout or little traction; Bonding curves get front-run; Private rounds give insiders better deals.

Enabling Custom Participation with Zero-Knowledge Verification

Thanks to Umia's in-built integrations with Zero-Knowledge solutions like zkTLS and zkPassport, it is possible to setup specific prequisites for participation that extend beyond simply taking part in the auction at specific times.

This integration provides full customisation, and unlocks features such as:

• Preferential participation from community participants (NFT holders, Social Media followers, etc)
• Verification of identity to, for example, provide key supporters the opportunity to participate
• Reserve either the entire auction or specific allocation buckets for specific participants

Integration of Zero-Knowledge tooling is entirely optional, and every project can decide whether to utilise it or not.

The steps of a Continuous Clearing Auction

1. You commit ETH

Submit a market order with however much you want to participate. Your order gets spread across all remaining buckets in the auction. For example, asssume there is a 7-day auction. If you commit on day 1, you're in all 7 buckets. Commit on day 5, you only get the last 3.

2. Buckets release tokens

The auction runs over multiple days (usually 7). Each day is a "bucket" that releases a portion of the tokens. Day 1 might release 20%, day 2 releases 15%, and so on.

3. Each bucket has its own clearing price

Within each bucket, everyone pays the same price. But different buckets can have different prices. Early buckets often clear lower because there's less demand. As the auction progresses and more people pile in, later buckets clear higher.

4. Prices can only go upwards in each bucket

The clearing price is monotonically increasing. If bucket 1 clears at $0.08, bucket 2 will clear at $0.08 or higher, never lower. This protects early participants from being undercut on later buckets.

5. Your average price depends on when you bid

If you bid on day 1, you get tokens from all 7 buckets at their respective prices. Your average cost might be $0.085. Someone who bids on day 5 only gets tokens from buckets 5-7, which might all be at $0.10+. Early commitment is rewarded.

6. Refunds if oversubscribed

If a bucket is oversubscribed, allocations are pro-rata and excess ETH refunds automatically.

7. Liquidity seeds at the end

When the auction ends, a Uniswap V4 pool gets created at the final clearing price. Trading opens immediately.

Why early bidding matters

The bucket system creates an incentive to bid early:

1. Early bidders participate in more buckets
2. Early buckets tend to clear at lower prices
3. Your blended average cost is lower

Someone waiting until the last day only gets tokens at the final (highest) price. Someone committing on day 1 gets a mix of prices across all buckets.

This discourages "sniping" and rewards genuine early supporters.

Example

Project launches with $8M target, 10% of supply (100M tokens), 7 day auction.

Release schedule: 20% / 15% / 15% / 15% / 15% / 10% / 10%

Alice bids $1000 on day 1. She gets tokens from all 7 buckets at their respective prices. Her average cost: ~$0.089.

Bob bids $1000 on day 5. He only gets tokens from buckets 5-7. His average cost: ~$0.100.

Both participated in the same auction, but Alice got a better deal by committing earlier.