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Auction Contract

The Auction Contract is an important component of the Repl protocol as it auctions unlocked FIL into pFIL, burns a corresponding amount of pFIL as the unlocked FIL, and distributes the remaining to pFIL holders. As mentioned in previous sections, when locked FIL are released from Miner Actors, the Repl protocol will put these FIL up for auction in the open market, through a Reverse Dutch Auction.

Bidders can only use pFIL to make bids on these FIL. Thus, the Repl protocol essentially acquires pFIL from the open market. The amount of pFIL equivalent to the original pFIL amount minted will be burned and the remaining pFIL obtained from the auctions will be distributed to pFIL holders as rewards.