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Yuga Labs’ TwelveFold Auctions Generate Criticism from the Cryptocurrency Community

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According to the news on March 6, Yuga Labs\’ TwelveFold auction model caused dissatisfaction from the encryption community. According to the auction rules, the…

Yuga Labs TwelveFold Auctions Generate Criticism from the Cryptocurrency Community

According to the news on March 6, Yuga Labs’ TwelveFold auction model caused dissatisfaction from the encryption community. According to the auction rules, the bidder was required to send all its BTC bid amount to the only BTC address controlled by Yuga. The winning bidder only needed to pay the BTC they bid, and Yuga said that it would return the BTC to the bidder who failed. Some people pointed out that unsuccessful bids must be refunded manually, just like in the “Stone Age”.

Yuga Labs’ TwelveFold auction model caused dissatisfaction from the creators of the Ordinals protocol and the encryption community

Interpretation of the news:


Yuga Labs’ TwelveFold auction model, a recently announced approach for cryptocurrency auctions, has recently caused dissatisfaction in the cryptocurrency community. According to the rules of the auctions, bidders are required to send all of their BTC bid amount to the only BTC address controlled by Yuga, which has caused more than a few of the bidders to raise red flags on this approach.

The winning bidder then needs only to pay the amount he has bid, and Yuga Labs has stated that they will be returning the BTC amounts to those bidders who fail. Though this might seem like a straightforward and simple process, many critics have noted that this kind of approach is quite out of date, and could even be compared to manual refunding from the “Stone Age.”

Those who were critical of the process have argued that this particular approach puts the bidders at a disadvantage, as returning the BTC amount will become a manual process in which the bidder will have to manually ask for the return of the specific amounts they had initially bid. This cannot be done automatically by the system, which is considered an outdated and archaic flaw in the design of Yuga Labs’ model.

Critics have pointed out that this kind of approach is not the first of its kind. It follows a past model used by ICOs, where companies would sell cryptocurrency to bidders directly, without the need for an exchange. At the same time, it is a risky approach to keep all the funds in one address controlled by one company, which would create a lot of problems in case an attack takes place.

In conclusion, while Yuga Labs’ TwelveFold auction model was hailed initially as a significant improvement in the field of cryptocurrency auctions, currently there are too many issues with the process that need to be addressed. Critics have pointed out that the manual refunding process is inefficient, and the risk of having all funds in one central location poses a danger to potential bidders. Despite this criticism, it’s essential to keep innovating, and with a few more updates and modifications, this auction model could become something viable and effective for the crypto audience.

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