The World’s First Commercial Real Estate DeFi Project’s Game-theoretic Auction

Jointer’s Mathematical Game reached 3,000% growth on Binance Smart Chain

Game-theoretic modeling on the blockchain

The auction is designed around Game-theoretic models where the investor’s total benefit depends on both their individual performance and a common group investment goal. The individual and group benefit creates unique symmetric equilibrium among investors.

The game begins each Auction day when there is zero investment and opportunistic investors that may invest the smallest amount possible to win the entire offering at a discounted rate, while hoping that the total investments after their investment will not increase significantly. If this happens, participants win a disproportionate discount.

For example if the total JNTR daily Auction supply is worth $10,000 and investors invest a total of $1, the discount to participating investors will be equal to 99.99999%.

It is likely at this stage that investors recognize the opportunity and immediately invest as well to take advantage of the large discount. When the $1s accumulate and become $1,000, the total group discount starts to go down to 90% and then furthermore as the total investment keeps increasing.

This strategy creates a positive dilemma, “Should I invest the smallest amount possible in hopes that all other investors do the same? Will the discount remain high enough for all, even if I receive a smaller portion relative to all other investors?” — or — “Should I invest a large amount proportionate to others, in hopes of increasing my personal share proportionate to all other investors, and hope that they will not do the same?”

This dilemma can lead to a global competition between investors acting to serve their own personal interest by increasing their proportional investment to gain a bigger share from the total supply. More to that point, Jointer creates an added incentive as an individual bonus. This bonus provides the top five (5) daily investors an extra bonus up to 50% on all JNTR they received.

The combination of temptation and human disordered desire for “more than”, along with self-interest as a motivating human action, creates a high possibility that the total investment each day will increase towards the daily goal, resulting in a reduced discount to all. In fact, once the exact total investment amount from yesterday has been met, the daily goal reached and the discount to all will be 0%.

The Next Dilemma

As the total discount decreases with every additional investment, at some point the group and the individual interest may become more aligned with avoiding additional investment to keep the discount from dissolving. At this point, the game-theoretic auction creates a new dilemma to participants by offering a new option to keep investing until the 0% discount is reached. This will open the opportunity to invest only $0.01 more to exceed yesterday’s total investment, triggering the Group discount and regaining a 50% discount to all.

Once the group discount triggers and there is a guaranteed 50% discount for all, new types of investors may be encouraged to participate (skeptical that wait on the bench to see first the final discount outcome) and as a result may lead to the final phase of behavioral economics to avoid loss aversion. which means the group of investors that was the force behind the group discount’s trigger, may feel that new investment is coming at their expense and shrinking their proportion supply, that thought may lead them to preserve their pro-rata position by investing more.

Also we believe that once the 50% discount to all is guaranteed, investors may buy JNTR on the second market at a premium price. (read more about it in Premium buy-orders)

Daily Auction Incentives

Jointer provides investors incentives to benefit the group as a whole while still optimizing their own personal benefit. The group is encouraged to outperform the previous day while individuals are incentivized to lead the daily investments and invest the maximum allotted by the Auction on that day. The dual bonus structure provides both large and small investors an opportunity to benefit from the daily success as a group and as an individual.

The Group Discount

Allows everyone to benefit from a greater JNTR discount of 50% once the auction exceeds yesterday’s total investment.

The Individual Bonus

Benefits the top five (5) largest contributors to the round by offering a multiplier that incentivizes daily lead investors.

Both bonuses are uncapped but cannot exceed the daily investment cap.

The Jointer.io Auction is currently live on the Binance Smart Chain Mainnet.


The World’s First Commercial Real Estate DeFi Project’s Game-theoretic Auction was originally published in Data Driven Investor on Medium, where people are continuing the conversation by highlighting and responding to this story.