Hey there @aaronsuncamacho.

The Morphene auction format is slightly different than a traditional online auction such as eBay. This format is more similar to something like QuiBids.

The consigner can create an auction with 0 MORPH if they wish. But as you said, who would bid 1 MORPH to win .9 MORPH?

The user does not select an amount for a bid. The bids are all worth 1 MORPH.

Example:

Consigner makes an auction with a initial fee of 100 MORPH and a duration of 5 minutes. 1000 bids are placed on the auction from various bidders. The auction now has a value of 1100 MORPH.

Consigner receives 10%, 110 MORPH, winning bidder gets 90%, 990 MORPH. Consigner made 10 MORPH profit for just starting an auction.

Example 2:

Consigner makes auction worth 10 MORPH, and a 10 minute duration, it gets 1000 bids, and a value of 1010 MORPH.

Consigner gets a whopping 101 MORPH, winning bidder gets 909 MORPH.

This auction format is often referred to as penny auctions.

We have plans to implement the various other types of auctions such as eBay style, but we want to have a working reputation system for such a thing first. The current auction format requires zero trust, so reputation is useless.

Also, don't tell anyone I told you, but there likely will be some whale creating a lot of large payout auctions in the system with no expectation of return. What a fun token delivery mechanism! ;)