# How Does The IDA Work ### ⚙️ How It Works #### 1. Compete for Token Bundles During the IDA, participants bid on **$GBM token bundles**.\ \ Each bundle comes with a **12-month soulbound NFT** featuring its own traits and rarity. This NFT also grants the holder the right to claim a fixed number of $GBM tokens on distribution day. There will be **various different bundle size categories** available throughout the auction, catering to all types of participants, from smaller supporters to larger ones. All bundles in the **first wave** start at **0 USDC**, and prices rise transparently through open bidding as the auction progresses. #### 2. Place Bids on Bundles To take part, visit [**ida.gbm.auction**](https://ida.gbm.auction) and connect a supported Web3 wallet.\ You’ll need both **USDC (for bidding)** and **ETH (for gas fees)** on the **Base network**. When the IDA is running, you can browse all live bundles and place bids on any you choose. If you’re **outbid**, your entire bid is instantly **refunded**, and you earn an **incentive reward,** up to **10%**, depending on how much you outbid the previous bidder by. \ \ IDA participants can also earn enhanced rewards from using our Referral system. #### 3. Referral System If you refer a friend to the $GBM IDA, you will earn bonus rewards.\ If your friend uses your referral code or link, they will also earn bonus rewards. The referrer gets 5% of the reward earned by the people they refer.\ “For every 100 USDC the people you’ve referred earn, you will earn 5 USDC.” The referred earns 1% extra of their rewards if outbid.\ “If you use a referral code, for every 100 USDC you earn you’ll get an extra 1 USDC” *Example:*\ User A refers User B to the IDA\ B bids 100 USDC, and gets outbid.\ B earns 10 USDC in rewards, with a bonus of 0.1 USDC (1% bonus reward from using referral)\ A also earns 0.5 USDC (5% of reward) referral earnings #### 4. Five Dynamic Waves The IDA unfolds across **five progressive waves**, each containing a different number of token bundles across the seven different size categories.\ \ A new wave unlocks only when the **previous fundraising target is met**, introducing new bundles as genuine demand grows. When a new wave begins, the **starting price per token** for all bundles in that wave is set to match the **lowest live price per token** currently being bid anywhere in the auction. #### 5. Winning Bundles When the auction time ends, the **highest bidder** for each bundle wins its associated **12-month soulbound NFT** which will be automatically sent to their wallet and the end of the IDA.\ \ These NFTs act as both collectibles and claim certificates, representing your right to claim the underlying $GBM tokens through the **GBM Token Dashboard** once distribution day begins. #### 6. Post IDA Listing Price After the IDA concludes, the **weighted average final bid price** across all winning bundles establishes the an official reference price for the initial $GBM token listing. Up to **50% of the funds raised** may be used to **buy and burn $GBM tokens** creating further long-term alignment between token holders and the GBM Protocol. *Note: There is no guarantee, promise, or expectation of resale value or financial return. GBM tokens are utility tokens, intended for use within the GBM Protocol.* --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.gbm.auction/the-gbm-ida/initial-distribution-auction-ida/how-does-the-ida-work.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.