# Auction Protocol

The NEXION Auction protocol is a critical part to driving success of the NEXION ecosystem. The protocol is designed to run perpetually.

## **How the PLS is allocated from Auction**

* <mark style="color:purple;">**50% to Buyback & Vault Mechanism:**</mark>
  * **45%** Directly fuels NEON buybacks from the open market. Purchased NEON tokens are sent to the **Buy-and-Burn mechanism**, reducing circulating supply.
  * **45%** Of the purchased tokens are sent to the NEON Vault.
  * **10%** Is allocated to the Farm Investment wallet.
  * This continuous demand accelerates deflation and supports sustainable value growth.
* <mark style="color:purple;">**25% to Farming Investment Wallet:**</mark>

  Allocated to a dedicated wallet for strategic farming investments. This wallet generates yield by participating in farms across the ecosystem, enhancing the NEON treasury.

  * 10% of harvested rewards are sent to team treasury
  * 90% of harvested rewards are sent to the Staking Rewards Pool<br>

  Rewards are harvested from the farm pool and utilized to build the Staking Reward Pool. This pool is rewarded to users who Stake their NEON tokens in the HoloVault.
* <mark style="color:purple;">**18% to Liquidity Bonding:**</mark>\
  Used to create and add **Bonded Liquidity Pool** pair NEON/PLS. This LP is burned.
* <mark style="color:purple;">**3% to LP Bonds:**</mark>\
  Used to create and add **Bonded Liquidity Pools** paired with PulseChain ecosystem tokens, such as:

  * PLS
  * PLSX
  * HEX
  * ATROPA
  * INC
  * pDAI

  <br>
* <mark style="color:purple;">**3% Genesis Allocation:**</mark>

  * A small percentage is allocated to the **Team**, ensuring the resources necessary for:
    * Continued innovation.
    * System sustainability.
    * Long-term success.
  * Maintains transparency and trust with the community.

  <br>
* <mark style="color:purple;">**1% to Raffle Game:**</mark>
  * Fuels the **NEON Raffle Game**, an exciting, decentralized lottery system.
  * Players buy tickets with PLS for a chance to win NEON rewards.
  * Enhances liquidity and system growth while distributing rewards transparently.

## **How the Auction works:**

### **Auction Reward Allocation: Day 1-10**

During the first 10 days of the NEXION Auction, rewards are derived from the **initial minting** of **90 million NEON tokens per day**, totaling 900 million NEON tokens distributed in this phase. This rapid distribution phase ensures a fair launch and kickstarts the protocol’s deflationary and reward building mechanisms.

### **Auction Reward Allocation: Post-Day 10**

After day 10, daily auction tokens are sourced from the **NEON Vault**. The Vault drips **20% of its remaining balance per day** into the auction system, ensuring a steady stream of rewards for participants while maintaining deflationary pressure on the NEON supply.<br>

The NEXION Auction is not just a distribution mechanism—it’s a carefully designed system that integrates deflation, liquidity bonding, and ecosystem growth to create sustained value for all participants. Join the auction and be part of NEON's hyper-deflationary journey!
