What is a BUN?
The bid unit (or BUN) is a token used to bid at auctions and to redeem for services and benefits on Loot NFT. It has a fixed supply and no more than 500m will ever be issued.
… and the Oven?
Whenever BUNs are spent by members, they are sent to a time-locked wallet called the Oven. Every Sunday, the Oven empties the BUNs it collects weekly back to our ecosystem. Members get 20% as rewards and we get 80% for resale to members.
Calculating Oven Rewards
We track the number of BUNs bid at auctions from a member’s first bid. Oven rewards are distributed to members based on their participation at auctions (i.e., amount of BUNs bid) pro rata all other members. Ten percent of the Oven rewards all time participation, and the other ten percent rewards participation for the past 7 days.
BUNs are used to prove active membership (you must have at least 1 BUN in your account), invite people (currently, costs 1 BUN), to pay for re-listing fees (currently, 250 BUNs), and as an accounting unit to calculate the proceeds of an auction USDC.
Internal Exchange Rate
The value of BUNs in our ecosystem is lower than the price at which we sell them. This is because we must account for “free” BUNs given as bonuses and rewards (e.g., if we give 100m as rewards to members, then the internal value of 1 BUN is 0.16 USDC and not 0.20 USDC). We use this internal rate to calculate the proceeds from an auction.
BUNs are sold in packs of 25 for 5 USDC. When signing up for the first time, you will be prompted to buy BUNs to log in. Transfer your USDC as requested and we will credit your account with BUNs. You can also buy BUNs from your wallet by clicking on the “Buy” button.