> For the complete documentation index, see [llms.txt](https://fomonft.gitbook.io/fomonft/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://fomonft.gitbook.io/fomonft/accumulative-auction.md).

# Accumulative Auction

![](https://235233614-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-Mk_7_u8ZmYAgGrtC3zq%2F-Mka9Bm7LwkNWEkM-i-D%2F-MkaAOJo4xof5gIHD5Q3%2Fdesign-78b6a081-9bc3-4c88-b0ee-4c3c0420bf79.png?alt=media\&token=ca9670ad-9898-4cdc-b78d-36f638a0e0d6)

| **NFT Sellers**                                                                                                                                        | **Winning Bidder**                                                                                                                                  | **Bidders**                                                                                                           |
| ------------------------------------------------------------------------------------------------------------------------------------------------------ | --------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------- |
| Selling a NFT on FomoNFT earns you **12.5%** (1/8) of the round’s jackpot (not the final bid price). This is usually much higher than simple auctions. | Winning gives you not only the NFT, but also **37.5%** (3/8) of the round’s jackpot. Winners usually earn back much more BNB than the bidding cost. | After placing bids, bidders will continue to receive a **stream of BNB rewards** as long as the auction remains open. |

FomoNFT follows the exciting **Accumulative Auction** (**AA**) mechanism. AA sends a stream of rewards to all bidders during an auction and creates the most value for NFT sellers when the auction ends. Here is how it works:

* Players can start to place bids when an auction **starts**. A new bid must be **placed at the Current Bid Price** to be displayed.

![](https://235233614-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F-Mk_7_u8ZmYAgGrtC3zq%2Fuploads%2FKiXOmjGSuWcn5QxAUI67%2FCurrent%20Bid%20Price%20Fomo.png?alt=media\&token=f35dcf87-4cfc-4c1e-aa31-1dd1fc2ca2cd)

* While a bidder must follow the **Current Bid Price** (which grows at a constant rate of 1%), a bidder can select **how many bids to place at that price** to acquire a suitable share of receiving BNB rewards from later bids.
* The bid amount is immediately distributed. **50%** of the bid amount is distributed to all existing bidders, including the bidder placing the new bid. So, existing bidders will receive **a stream of rewards in BNB** when new bids come in. These rewards can be very significant when bids keep coming in and bid amounts become greater and greater.

{% hint style="info" %}
🧇 **Important: under AA, you will not be refunded if your bid is later outbid**. The amount of a placed bid is immediately collected and sent to previous bidders and the auction’s jackpot. This process is immediate, final, and irreversible, whether the bid wins in the end or not.
{% endhint %}

* **50%** of the bid amount is deposited into the auction’s jackpot, waiting for a winner to claim.
* Each time a new bid is accepted, the auction timer resets to full [**effective round time**](/fomonft/auction-round-time.md) to wait for even higher bids. If no new bid comes in and the **round time** elapses, the auction is closed. 
* The then leading bid becomes the winning bid, and the winning bidder will win the NFT. In addition, the accumulated auction’s jackpot will be distributed to three parties: **50%** to all bidders, **37.5%** to the winning bidder, and **12.5%** to the NFT seller.