Dutch auctions are “inverted” auctions. The price point per token is set high and descends as the auction goes on in the event that no one is buying in. This rate of price adjustment is set by the auctioneer. The final price per token is set when all tokens have been allocated. Participants are committing to receive a minimum total value rather than bidding for the tokens themselves - because of this it is common to end up with more tokens than what was initially bid for.

Example: An auction starts at $100 per token. It is set to depreciate in value every hour if a token is not bought. If no one buys the token after the first hour, it automatically lowers itself to the price point of $90 per token. Every purchase resets the hour long timer until the token price starts to depreciates again. If no tokens are bought in the second hour - again the price of the token drops, this time to $80. Another hour passes, now it is valued at $70. This cycle would continue until all the tokens are purchased or they become valued at $0.