xga.fyi
Technical

Secondary Market

An explanation of the secondary market.

Secondary Market

The structure the secondary market so that a concentrated selling back is feasible

graph TD
    subgraph "Secondary Market"
        A[Primary Market Winner] --> B{Has Excess Capacity};
        B -- Yes --> C[Offer on Secondary Market];
        C --> D{Buyer Found};
        D -- Yes --> E[Sell Capacity];
        E --> F[Transfer of Rights];
        B -- No --> G[Use Capacity];
    end

    style A fill:#c8e6c9,stroke:#333,stroke-width:2px;
    style B fill:#fff9c4,stroke:#333,stroke-width:2px;
    style C fill:#e1f5fe,stroke:#333,stroke-width:2px;
    style D fill:#fff9c4,stroke:#333,stroke-width:2px;
    style E fill:#f8bbd0,stroke:#333,stroke-width:2px;
    style F fill:#e1f5fe,stroke:#333,stroke-width:2px;
    style G fill:#c8e6c9,stroke:#333,stroke-width:2px;

The main purpose of this market is to account for information differences over time - builders might realize they cannot fill a block; or they might need more space The base fee is not known at the time of the primary market; so there should be updates regarding the base fee happening with before-strike-time blocks being minted. This also affects the initial pricing we offer.

Allocation subject to change

It is unclear what allocation we will have from the primary market, as a winner-takes all is possible

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