Primary Market

Debt instruments can be distributed on the primary market in different ways, such as book building, auctions, etc.

The primary market allocates units before the contract becomes active.

Allocation phase

primary_distribution MUST reserve units for an existing holder account while the contract is in STATUS_PENDING_IED.

The method MUST reject allocations that:

• Occur before configuration is complete;
• Occur after IED;
• Exceed the remaining unallocated supply;
• Target a suspended or missing holder account;
• Request zero units.

Only an active Primary Dealer MUST be able to call primary_distribution.

The Primary Dealer role validity period MAY be used to precisely bound the primary distribution window.

Completion requirement

contract_execute_ied MUST fail unless:

reserved_units_total == total_units

This rule makes full issuance an explicit precondition of activation in the current reference implementation.

Activation

Primary distribution reserves units only. Reserved units do not accrue funded ACTUS cashflows until IED executes and the holder position is activated.

Proxies

The Primary Dealer role MAY be delegated to a proxy Application implementing a primary market.

Tip

The primary market is performed as an auction on a dedicated Algorand Application. The implementation requires the primary_distribution method to be called exclusively by the primary market Application, which defines the auction’s outcome.

Tip

The primary market is performed as a book building by an authorized Book-builder Address. The implementation requires the primary_distribution method to be called exclusively by the authorized Book-builder.