2018 — 2026

GBM: The auction where every bidder was paid.

An auction mechanism invented in 2018 for the world’s first celebrity NFT platform. GBM went on to be deployed across several blockchain networks, ran as an open protocol and, through Stripe, was used by auction houses on three continents. It processed more than $200M in bidding volume across 90,000 auctions, returning over $6M to losing bidders.

Cryptograph

In 2018, Guillaume Gonnaud, Edouard Bessire and Hugo McDonaugh set out to build Cryptograph, a platform selling one-of-a-kind digital works made with artists and public figures, to raise money for charities. It launched in 2020 as the first celebrity NFT platform in the world, at a time when most people had never heard the term NFT. Contributors included Vitalik Buterin, Paris Hilton, Jason Momoa, Adrien Brody, Ashton Kutcher, Matt Bellamy, Alec Monopoly and the estate of Kobe Bryant. Each creation was called a cryptograph and the artwork’s ownership stored as an NFT on the Ethereum blockchain. When collectors bought or resold a cryptograph, it raised money for the cryptograph’s creator and their chosen charity.

Paris Hilton on X: “Today I am auctioning off my @Cryptograph of #Munchkin to benefit 3 amazing charities: @LAFoodBank @MealsOnWheels @BB4Homeless. The auction is live now for the next 72 hours at Cryptograph.co”, posted 13 August 2020, with a photograph of her holding a tablet showing the drawing beside her cat.
Paris Hilton announces the auction of her Cryptograph, 13 August 2020. The drawing of her cat, Munchkin, sold four days later for 40 ETH — close to $17,000.

To sell these unique works on the blockchain, the three founders invented a new auction mechanism: GBM. In a conventional auction one bidder wins and the rest leave with nothing; in a GBM auction, a bidder who is outbid receives their money back plus a cash reward, fixed at the moment they bid and paid the instant someone goes above them. They called it Bid-to-Earn. Rewarding outbid bidders incentivises participation — more bidders, earlier bids, better price discovery. Every sale on Cryptograph used it and money was raised for dozens of charitable organisations.

Vitalik Buterin holding a tablet displaying his cryptograph, a hand-drawn diagram titled “Quadratic Funding” with a smiley face and his signature beside it.
Vitalik Buterin with Quadratic Funding, the first cryptograph ever made, created at Devcon in Osaka in October 2019.

A patent application covering the GBM auction mechanism was filed in 2018 and published as US20210174432A1.

From feature to product

By the end of 2020 the NFT market was heating up, and projects issuing collections of their own ran into the same problem Cryptograph had already solved: how to price NFTs in a fair and transparent manner on the blockchain. The team decided to turn GBM into a solution other crypto projects could use.

The first substantial adopter was Aavegotchi, one of the most active and successful crypto games at the time. Aavegotchi ran GBM auctions for its own drops on Polygon in 2021, increasing its revenue by 158 per cent and reaching $52M in sales.

The GBM auction screen for Aavegotchi’s Haunt 2 sale. An unopened portal is listed at a current bid of 300 GHST under a LOW INCENTIVE setting, with a field to bid 400 GHST and a green banner reading “You’ll earn 1.87% (7.48 GHST) if outbid”. Below, the bid history shows one bid of 300 GHST placed three minutes earlier.
A live GBM auction during Aavegotchi’s Haunt 2 sale, 2021. The green line is the mechanism itself: bid 400 GHST here and you were told, before committing, exactly what being outbid would pay you.
A post by tburd.eth (@timtime) on 31 October 2021: “I effn love @GBMauction EVERY #bid2earn auction with @aavegotchi is a win. More drops might wanna consider this mechanism for drops”.
The same auctions from the bidder’s side, October 2021.

myNFT

As the NFT market boomed in 2021 — volumes reached $17B that year — the three founders raised over $7M to build myNFT, a general-purpose NFT marketplace with GBM auctions built in. The round was led by Scytale Ventures, with Signum Growth Capital, Future Perfect Ventures and SevenX Ventures following, alongside a number of business angels.

The ambition was to build the most user-friendly way for anyone to create, share and trade NFTs, aimed at people who were not already in crypto rather than those who were. The team grew to 25, working remotely across 10 countries.

A hand holding a phone showing the myNFT app’s welcome screen, with a featured work titled “Rocket Baby by nickwallentin” and the line “myNFT is the platform that puts the power back in your hands.”
The welcome screen of the myNFT app, in 2022 before its launch.

The platform was completed at the end of 2022, by which point trading volumes across the sector had fallen by roughly 90 per cent from their peak. The market never recovered.

A visitor pressing the keypad of the myNFT vending machine outside the NFT.London conference at dusk. The machine is magenta and black under a lit neon myNFT sign, printed with “Europe’s first NFT vending machine” and “Fiat accepted, $0 gas”, its racks stacked with myNFT-branded packages.
myNFT built Europe’s first NFT vending machine and installed it outside the NFT.London conference in November 2022, to promote the marketplace it was about to launch.

A blockchain technology provider

The company decided to shelve the general-purpose marketplace and turn what was built for myNFT — the auction engine, the settlement logic, the interfaces — into a blockchain application put to work on other people’s platforms.

The GBM product was successfully deployed as a white-label solution across seven blockchain networks and integrated by projects including The Sandbox, Decentraland, Unstoppable Domains, Freename, Singular and Song A Day.

A GBM case study comparing Song A Day’s results under English auctions and GBM auctions. Average first bid rose from $43 to $95, average sale from $118 to $396, highest sale price from $2,630 to $10,786, and net revenue from $11,870 to $35,534.
Song A Day integrated GBM in 2022 and compared their results with the conventional auctions they had used before. Average sale price rose from $118 to $396, and net revenue roughly tripled. They still use GBM auctions to this day.
The Sandbox ran its largest LAND sale to date on GBM, and built an arcade cabinet for NFT Paris in February 2025 so visitors could place bids from the show floor while the same sale ran live online.

Fiat currency product

In 2025, alongside the blockchain business, GBM launched a white-label auction platform for traditional auction houses, powered by Stripe. It was the first time the mechanism ran in ordinary currency — dollars, euros, sterling — rather than crypto.

This put the GBM auction within reach of established auction houses and marketplaces outside the crypto market. The product went live across three continents and was used to sell everything from heavy construction equipment to domain names and fine art.

The Equippo Bid-to-Earn auction page: 11 lots of ex-rental construction equipment — boom lifts, a mini excavator, electric trolleys, a compactor — each with a current bid in euros. The header gives the location as Rotterdam, bidding open 23 to 28 July 2025, a 15 per cent buyer premium, and bidder rewards set to Medium, between 0.5 and 5 per cent of the bid amount.
The first GBM auction run entirely without blockchain: 11 lots of ex-rental machinery for Equippo, a leading European construction equipment marketplace, bid and settled in euros. Rotterdam, July 2025.

The $GBM Protocol

After years of running the blockchain side as a service business, the team decided it was time to decentralise it and hand it over to the community. GBM was released as an open protocol: any project could deploy its own auction house without a contract, an introduction or a line of code, and a protocol fee was collected by the smart contract at settlement.

The GBM protocol website. A headline reads “Redefining the Auction Standard” above the line “GBM is the next generation auction protocol where every bid matters and everybody wins”, with links to Docs and Contact, a Deploy Now button, and the tags Fair, Transparent and Rewarding.
The protocol site, where any project could deploy its own on-chain auction house in minutes.

The protocol was governed by the $GBM token. It served as the currency for deploying auction houses and for bidding, could be staked for rewards and for enhanced incentive rates, and carried voting power over the protocol’s parameters and its treasury. A billion were issued, and the protocol went live in 2026.

The protocol has since been wound down. The contracts remain available and verified on chain. Read the GBM Diamond contract.

How the GBM auction works

A GBM auction is a timed, open, ascending auction. Bids rise, the highest bidder at the close takes the item, and each new bid has to beat the standing bid by a set minimum, like a traditional English auction.

The difference is what happens when a bidder is outbid. They receive their money back plus a reward, calculated as a percentage of their own bid and fixed the moment they place it. It never depends on the final price, on how many bids follow, or on who wins, so a bidder knows exactly what being outbid will pay them before they commit. The reward rate scales with the size of the bid: the minimum step earns the floor rate, and larger jumps earn more, rising to a ceiling reached at roughly double the standing bid. The money comes from the proceeds of the sale: at the close, the seller receives the winning bid less the sum of every reward paid out along the way.

A diagram of a three-bid GBM auction. The first bidder bids $1,000 and is paid $100 when outbid, getting $1,100 back. The second bids $2,000 and is paid $200 when outbid, getting $2,200 back. The third bids $3,000 and wins, so their own incentive is never paid. The seller receives $3,000 less $100 and $200, leaving $2,700.
Three bids, and what each participant walks away with. Both losing bidders are paid; the seller keeps $2,700 of the $3,000 winning bid. The winner’s own reward is never paid, because nobody outbid them.

One inequality holds the design together — the minimum bid step has to be at least as large as the maximum reward rate. Rewards are paid out to bidders while the auction is still running, so the money has to be there as it goes, and the inequality guarantees it always is: every new bid adds more to the pot than the reward it triggers. The auction stays liquid at every moment, and the seller’s proceeds never fall however many bids are placed. It also makes gaming unprofitable by construction: outbidding oneself to harvest rewards always costs more in new capital than it returns, which disposes of shill bidding and wash trading at the same time.

A formal analysis of the mechanism was written up and published in March 2026 by Edouard Bessire. The paper derives the equilibrium in closed form and proves the results the design rests on: that every bidder is better off under GBM than under a conventional auction whatever their appetite for risk, that the overbidding it induces is negligible, and that in thin markets the additional participation more than covers the cost of the rewards, leaving the seller ahead as well. It tests those predictions against 11,900 auctions run under controlled conditions.

The GBM Auction: An Incentivised Ascending Auction Mechanism PDF · E. Bessire · March 2026 Supplementary Materials PDF · proofs, extended comparisons and robustness checks

In the press

Cryptograph, 2020–2021

myNFT, 2022

GBM auctions, 2024–2025

Thank you

Building Cryptograph, myNFT and GBM was an extraordinary run. When we started in 2018, people told us the idea was mad — that we were going to spend our time on pictures on the internet that cannot be copy-pasted.

Crypto in those years was the wild west, and not in the romantic sense. Scams were everywhere, hacks were a weekly event, and trust across the industry was close to zero. The law had not caught up, and banks and payment providers wanted nothing to do with any of it. Then the NFT wave arrived, faster and crazier than we had imagined it could, and receded just as quickly.

Along the way we solved some genuinely hard technical problems, and spent as much effort explaining a technology nobody had heard of as we did building it. We worked with some of the world’s biggest celebrities to raise money for charities. We changed direction several times, learned, and started again. We took a crypto product into the traditional world of payments. Then we gave the blockchain side away as an open protocol. We invented an auction mechanism which sounded too good to be true.

There were plenty of mistakes. It was an incredible education, and we are grateful to have had it.

We worked with remarkable people, and were backed by investors who took a real risk on something that did not yet exist. Thank you to:

  • the team members who helped us build this business
  • the investors who supported us
  • everyone who used our products, and talked about them
  • everyone who believed in us

It was quite a ride.