Overview
When configuring a Sonar sale, you choose a pricing strategy that determines how your token price is set. This decision is independent of your settlement strategy.Fixed Price Sale
The simplest option. You set a fixed token price upfront, and participants commit funds at that price.How It Works
- You announce the token price (e.g., $0.50 per token)
- Participants commit funds during the sale window
- If total commitments exceed the tokens available, the settlement strategy determines allocation
- Participants receive tokens at the fixed price; any excess funds are refunded
When to Use
- You want a simple, predictable experience for participants
- Price has already been determined through other means (e.g., prior funding rounds)
- You want to minimize complexity for your community
English Auction
A competitive bidding mechanism where participants submit bids specifying both a price they’re willing to pay and an amount. After the auction closes, a single “clearing price” is determined, and everyone pays that same price.How It Works
- Participants submit bids with a price and amount (e.g., “I’ll pay up to $0.75/token for $10,000 worth of tokens”)
- Bids can be revised upward during the auction (price and amount can only increase, not decrease)
- During the auction, Sonar continuously computes and publishes the estimated clearing price based on current bids
- When the auction closes, the final clearing price is calculated by starting at the highest bid and iterating downward until a price is found where the total value of qualifying bids (those at or above that price) is sufficient to purchase all available tokens
- All bids at or above the clearing price are successful
- Everyone pays the clearing price, regardless of what they bid
- Excess funds are refunded
Price Bounds
You can set minimum and maximum price limits to create a bounded auction:| Parameter | Description |
|---|---|
| Minimum price (floor) | The auction starts at this price—no bids accepted below it |
| Maximum price (ceiling) | No bids accepted above this price |
Example
- A participant bids $100,000 at a maximum price of $1.00 per token
- The clearing price is determined to be $0.75
- The participant receives tokens at $0.75 (spending $100,000)
- If their allocation is reduced due to oversubscription, the uncommitted portion is refunded
When to Use
- You want the market to discover a fair price
- You’re comfortable with price uncertainty
- You want to reward participants who value the tokens most highly
Everyone pays the same price. This eliminates “winner’s curse” anxiety—participants can bid their true maximum willingness to pay without worrying about overpaying relative to others.