Protectorate’s Event Horizon will mark the initial distribution of PRTC, its native token, utilizing a Dutch Auction Model.

A Dutch auction is a type of auction in which the initial price of an item starts high and gradually decreases until a buyer is willing to pay the current price. It's also known as a descending price auction. This mechanism is designed to find the true market value of an item by allowing buyers to decide when to enter the auction based on the price they are comfortable paying.

To explain the mechanism in the simplest manner for the PRTC token sale:

1. There will be up to 10,000,000 PRTC, representing 10% of total supply, allocated for the Event Horizon, coming from the treasury allocation as revealed in the distribution overview in the Protectorate Litepaper.

2. The PRTC token Dutch Auction begins with a high initial price of $1 (implying a $100M FDV).

3. The token price will gradually decrease over the period of the Event Horizon, to its lowest price of $0.10 (implying a $10M FDV).

4. Participants can enter the auction at the price they are willing to pay for PRTC tokens.

5. The auction continues until the hard cap of $3m is reached or the predetermined lowest price is reached.

6. Participants will ultimately purchase at the final settlement price at the conclusion of the Dutch Auction, ensuring they pay no more than any other participant.

7. The Event Horizon will be open for 72 hours. It will open at 4pm EST on June 28th, and close at 12pm EST on July 1st.

8. Wardens will have access to the Event Horizon for the first 48 hours, acting as the “Whitelist” phase. The advantage of this phase is that Wardens will be first to access the available PRTC for sale. This allows Wardens to dictate market value of PRTC if the sale concludes during this time period.

9. Public (Allegiants, Conscripts, Plebians, etc) will have access to the Event Horizon for the last 24 hours, if there is PRTC remaining by the time this period begins.

10. The Event Horizon soft cap will be $1m USD. If this soft cap is not filled, all participants are refunded in full at the closure of the Event Horizon.

11. There will be a hard cap of $3m USD. If this hard cap is filled, the Event Horizon closes, and the clearing price is calculated.

12. 24 hours after the Event Horizon closes, participants will be able to claim their PRTC.

13. After PRTC claiming is complete, liquidity will be added for PRTC/ETH using a portion of the sale proceeds, serving as the initial Protocol Owned Liquidity.

    Note: By utilizing a Dutch Auction, the Event Horizon allows participants to determine the market value of PRTC, ensuring maximum fairness for all participants.

About Protectorate Protocol

Protectorate is an innovative protocol designed to generate deep, sustainable liquidity for both NFTs and NFT financialization (NFTfi) protocols that have been developed to address the issues surrounding NFT liquidity. Functioning as a yield aggregation platform or a liquidity router, Protectorate aims to deliver the highest yield possible by deploying the assets deposited into a variety of strategies across NFTfi protocols.

The platform enables seamless liquidity provision for any NFT collection through a diverse range of partner NFTfi protocols, eliminating the cost, risk, and complexity associated with liquidity mining methods. Positioned as a "layer above" marketplaces, money markets, NFT AMMs, and other NFTfi protocols, Protectorate streamlines the provisioning process.

As it continues to develop, Protectorate strives to be truly cross-chain by deploying its systems wherever opportunities arise to enhance NFT financial infrastructure. Regardless of the network, Protectorate Protocol aspires to become the go-to hub for NFT liquidity.

Disclaimer

This document, protectorate.xyz and the information provided therein (collectively, the “Document”) in relation to Protectorate Protocol Ltd (“Protectorate” or the “Company”), its crypto-assets, business assets, strategy, and operations, including the PRTC Token (the “Token”), is for general informational purposes only and does not constitute an offer to buy or sell or solicitation of an offer to buy or sell any securities, options, futures, other derivatives or other capital markets products (collectively, the “Products”) in any jurisdiction and its content is not prescribed by securities laws.

Information contained in this Document should not be relied upon as advice to buy or sell or hold such Products. This Document does not provide any tax, legal or investment advice or opinion and does not take into the specific investment objectives or financial situation of any person. Protectorate and its agents, advisors, directors, officers, employees and shareholders make no representation or warranties, expressed or implied, as to the accuracy, quality, content, completeness, suitability, adequacy or timeliness of such information and Protectorate expressly disclaims any and all liability that may be based on such information or errors or omissions thereof. Protectorate reserves the right, but is in no way obliged, to amend or replace the information contained herein, in part or entirely, at any time, and undertakes no obligation to provide you with access to the amended information or to notify you thereof. The information contained in this Document as of even date supersedes any prior Document or conversation concerning the same, similar or related information. Any information, representations or statements not contained herein shall not be relied upon for any purpose. Neither Protectorate nor any of its representatives shall have any liability whatsoever (whether under contract, tort, trust or otherwise and whether in respect to direct, indirect or consequential losses or damages) to you or any person resulting from the use of the information in this Document by you or any of your representatives or for omissions from the information in this Document. Additionally, Protectorate undertakes no obligation to comment on the expectations of or statements made by, third parties in respect of the matters discussed in this Document.

Cryptocurrency products and non-fungible tokens are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Protectorate does not represent that any cryptocurrencies and/or non-fungible tokens be bought, sold, or held by you. You agree that you shall conduct your own due diligence and consult your financial advisor before making any investment decisions.