Continuous Clearing Auctions, or CCAs, spread token distribution over time through gradual batch releases. You submit a bid for tokens by setting your total budget and max price per token. As each batch drops, you receive tokens if your max price is within the current price range. Everyone in each batch pays the same price. You stop receiving tokens once the price exceeds your limit.
How is this different from a normal auction?
Traditional auctions happen all at once. CCAs are continuous, with tokens being sold bit by bit over the entire length of the auction.
You submit one transaction to place your bid, and it works automatically across all blocks. Your bid stays active until your max price is exceeded or you hit your total budget. The price per token can only go up or stay the same, so tokens purchased earlier in the auction have lower prices per token than ones purchased later.
Once you submit your bid, your funds are generally locked until the end of the auction. If your bid is out of range, you can collect the unused budget. Once the auction completes, you collect your tokens and any unspent funds from your bid.
What is a graduation threshold?
All auctions have a graduation threshold. This is a value that the auction must raise in the raise currency by the end of the auction. If this value is not reached, the auction fails to launch. If the auction fails, the smart contract automatically refunds 100% of your committed funds. The project cannot access your money unless the auction succeeds.