> ## Documentation Index
> Fetch the complete documentation index at: https://docs.metadao.fi/llms.txt
> Use this file to discover all available pages before exploring further.

# Bid Wall

> How the bid wall supports token price and reduces supply

## Overview

**NOTE: The Bid Wall is experimental, it may or may not be used by launches.**

The **Bid Wall** lets token holders sell tokens back at the project's Net Asset Value (NAV) per token. Tokens sold into it are permanently burned, reducing supply.

<Card title="View Program Source" icon="github" href="https://github.com/metaDAOproject/programs/tree/develop/programs/bid_wall/src">
  Fully onchain Solana program — all operations transparent and verifiable.
</Card>

## How It's Funded

The bid wall is funded from the ICO raise:

```
Bid Wall = Total Raised - (20% × Total Raised + Min Goal)
```

Or: `Bid Wall = 80% × Total Raised - Min Goal`

* **20% of total raised** → Liquidity pools (with 2.9M tokens)
* **Min goal** → Project treasury
* **Remainder** → Bid wall

## Example: $6M Minimum, $8M Raised

| Allocation       | Calculation        | Amount        |
| ---------------- | ------------------ | ------------- |
| Liquidity Pools  | 20% × \$8M         | \$1,600,000   |
| Project Treasury | Min goal           | \$6,000,000   |
| **Bid Wall**     | $8M - $1.6M - \$6M | **\$400,000** |

If a project raises exactly its minimum, the bid wall gets nothing. If it raises less than 125% of minimum, the bid wall will be small or zero.

## What Price Does the Bid Wall Buy At?

The bid wall buys at **NAV per token**, which adjusts with treasury balance:

```
                treasury_balance + lp_quote + bid_wall_quote
NAV per token = ------------------------------------------------
                    tokens_at_launch - tokens_bought_by_bid_wall
```

As the treasury spends USDC, NAV decreases. Dynamics:

* **At launch:** Bid wall price ≈ ICO price
* **After treasury spends:** Price decreases proportionally
* **Burns elsewhere:** NAV rises — selling into the bid wall becomes less attractive

## Example: Bid Wall Buying Power

$6M min / $8M raised, \$400K in bid wall:

| Scenario         | Treasury Balance | Approx. NAV/Token | Tokens Buyable |
| ---------------- | ---------------- | ----------------- | -------------- |
| At launch        | \$6M             | \~\$0.60          | \~666,666      |
| After \$1M spent | \$5M             | \~\$0.50          | \~800,000      |
| After \$3M spent | \$3M             | \~\$0.30          | \~1,333,333    |

*Actual NAV includes LP balances and tokens already bought by the bid wall.*

## Why This Design?

**Self-adjusting floor.** The bid wall creates a price floor tied to actual treasury value. If the project spends, the floor reflects that.

**1% fee to MetaDAO.** When you sell: you get USDC at NAV minus 1%, tokens are burned, fee goes to protocol revenue. Fair exit, not profit mechanism. Fee may be adjusted.

**Anti-gaming.** Burning tokens outside the bid wall *increases* NAV (tokens removed, USDC stays). Selling into the bid wall becomes less profitable. You can't game it by reducing supply first.

## Verification

| What                  | How                                   |
| --------------------- | ------------------------------------- |
| Bid wall USDC balance | Bid wall account on Solana Explorer   |
| Tokens burned         | Burn transactions in bid wall history |
| Current NAV           | Formula above with onchain data       |

## FAQ

<AccordionGroup>
  <Accordion title="Why doesn't all the excess go to the bid wall?">
    20% goes to liquidity pools for trading. The bid wall gets what remains after liquidity and the minimum goal.
  </Accordion>

  <Accordion title="Can the bid wall USDC be used for something else?">
    No. Onchain program restricts it to buy-and-burn only.
  </Accordion>

  <Accordion title="What happens when it runs out of USDC?">
    No more sales. After 90 days, remaining USDC can be returned to treasury. Tokens purchased are permanently burned.
  </Accordion>

  <Accordion title="Is there a time limit?">
    Yes. 90-day expiry. After that, team can recall remaining USDC to treasury.
  </Accordion>
</AccordionGroup>

## Summary

| Aspect        | Description                                         |
| ------------- | --------------------------------------------------- |
| **Funding**   | Total Raised - (20% × Total + Min Goal)             |
| **Buy Price** | NAV per token (adjusts with treasury balance)       |
| **Fee**       | 1% to MetaDAO (may be adjusted)                     |
| **Duration**  | 90 days, then remaining USDC can return to treasury |
| **Action**    | Buys tokens from sellers, burns them                |