Skip to main contentOIL uses a continuous Dutch auction mining mechanism (reverse auction), built on Fogo to take advantage of high speeds and low fees.
Dutch Auction
When a well is successfully won, the starting price of the next auction for that same well doubles from the last paid price, rewarding early buyers and discouraging late FOMO.
From this new starting price, the auction price decreases linearly to 0 FOGO over 1 hour.
OIL Wells
OIL features 4 distinct wells. Each well has a different mining rate (amount of OIL drilled per second), uniquely designed for diversity and competition. This encourages users to target better wells for faster mining, but with higher auction costs.
| Well | Tier | Mining rate (OIL/s) | Initial Bid (FOGO) |
|---|
| Well 0 | Seep | 0.4 | 400 |
| Well 1 | Flow | 0.8 | 800 |
| Well 2 | Gusher | 1.2 | 1200 |
| Well 3 | Blowout | 1.6 | 1600 |
Auction Distribution
When someone seizes a position, 100% Auction Price is allocated as follows:
- 86% to previous owner: Returned to the previous miner, creating incentive to defend position.
- 7% buyback and burn: Used to buy back OIL and burn, reducing token supply and increasing value.
- 3% liquidity: Used for liquidity and market making, adding stability to the OIL/FOGO trading pair.
- 3% for Staking: Allocated to staking pool to reward OIL holders.
- 1% → Dev + Protocol Fee.
