> For the complete documentation index, see [llms.txt](https://wiki.pepe.wtf/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://wiki.pepe.wtf/chapter-3-blockchain-counterparty-how-to/scarce.city.md). # Scarce.city ## [**Scarce.city**](https://scarce.city/) Scarce.city was started by [Chris Tramount](https://twitter.com/ctramount) and [Aryan Jabbari](https://twitter.com/AryanJabbari) with the help of honorary founder [Chiefmonkey](https://twitter.com/HodlrDotRocks) who seeded the artist community and had the original idea for the Lightning Auctions. > *“We believe that Bitcoin’s finest goods should be sold according to the network’s properties of pseudonymous, borderless, permissionless, trust minimized, and verifiable authenticity and supply.”* Scarce.city’s first major product was [Lightning Auctions](https://scarce.city/blog/introducing-lightning-auctions), which keeps auction participants accountable by collateralizing their bids through instant, low fee Lightning Network payments. ### **How Scarce.City's Lightning Auctions work** {% embed url="" %} #### **Step 1:** Deposit a small percentage of your bid as collateral and just top it off for additional bids**.** Bid deposits capped at 500K sats in case you want to ape in while staying within your Lightning comfort zone**.** #### **Step 2:** The winning bidder has 4 hours to pay their bid. If they don't, they lose their collateral and the next highest bidder has a chance to pay their high bid**.** #### **Step 3:** Once the item is paid for, deposits are refunded to the remaining participants. #### **HOT ZONE RULES:** * Bids placed in the final 10 minutes of the auction reset the countdown to 10 minutes * Auction can't end with a pending bid * On**-**chain bid deposits no longer accepted For additional info, please consider checking out [Scarce.city FAQ](https://scarce.city/faqs).