Abbreviated KLGS, this is a Gold Based Looting system.
When items drop, 1/2 the item level is used as a minimum bid. Then an auction occurs with no takebacks, and whomever bids highests, gets the item.
If no one is willing to pay the minbid, it is sharded. The Loot Master is paid the money, and the raid continues.
At the end of the night of raiding, everyone is sent an equal share of the gold garnered from the auctions.
Why this system?
Many people hate DKP. Additionally, this incentivices raiders who are well geared to go to old content and gear new people.
This itself is a variation on the poorly named GDKP system (as that nor this system involves actual DKP).
Annoying roles (such as being the raidleader) can be incentivized with an additional half-share of the loot.