Choosing Auction Parameters
The parameters you set when creating a launch directly affect how your auction behaves, how price discovery unfolds, and what happens after graduation. Here is guidance on each key parameter.
Floor Price
The floor price sets the minimum clearing price for your auction. The clearing price can never drop below this value.
- Too high: Demand may not materialize, and the auction could fail to graduate
- Too low: Tokens may sell for less than their fair value in the early blocks
- Guidance: Set a floor price that represents the absolute minimum you consider acceptable. The market will discover the actual price above this floor.
Think of the floor price as a safety net, not a target. The clearing price will typically settle well above the floor if there is genuine demand.
Duration
Auction duration controls how long bidders have to participate and how much time the market has for price discovery.
- Longer auctions (days to weeks): More time for price discovery, wider participation, but slower time to market
- Shorter auctions (hours to a day): Faster launch, but less time for the market to converge on fair value
- Guidance: For a new project, longer durations (3-7 days) give the community time to research and participate. Established projects with existing communities can use shorter durations.
Tick Spacing
Tick spacing determines the granularity of price levels in the auction. Bids are placed on discrete tick levels, not arbitrary prices.
- Smaller tick spacing: More precise pricing, finer-grained price discovery
- Larger tick spacing: Fewer price levels, which can concentrate liquidity at each level
- Guidance: Smaller spacing is generally better for price accuracy. Use larger spacing only if you expect a small number of participants and want to encourage liquidity concentration.
Supply Schedule
The supply schedule defines how tokens are released over the course of the auction. Tokens are not all available immediately -- they unlock gradually according to a rate defined in MPS (milli-basis points per slot).
- Faster release: More supply available early, which can keep the clearing price lower
- Slower release: Supply scarcity in early slots can drive the clearing price higher initially
- Guidance: A steady, even release rate is the most predictable. Front-loading supply can attract early bidders, while back-loading rewards patience.
BPS Allocation
The BPS (basis points) allocation determines how the total token supply is divided:
| Allocation | Purpose | Recommendation |
|---|---|---|
| Auction | Tokens sold via CCA to bidders | 50-70% |
| Liquidity Pool | Paired with raised funds to seed Raydium CPMM pool | 20-35% |
| Team | Reserved for the creator team (held in escrow) | 5-15% |
- The auction allocation is what bidders are competing for
- The LP allocation creates permanent, non-removable liquidity (LP tokens are burned)
- The team allocation is held in escrow and subject to any vesting or release conditions
All allocations must sum to exactly 10,000 BPS (100%). The LP allocation directly affects how much trading liquidity your token launches with -- a higher LP allocation means a healthier initial market.