Yuga Labs’ TwelveFold Auction Model Faces Criticism from Crypto Community

03/06/2023 06:54 • Tech Ticker • 100 views

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

Interpret the above information:

Yuga Labs, a blockchain technology firm, introduced their latest auction model called TwelveFold. However, the launch of the auction has caused disappointment and frustration among cryptocurrency enthusiasts. According to the rules of the auction, a bidder needed to send all their BTC bid amount to Yuga’s only BTC address, which was controlled by the firm. The winner only paid the BTC they bid for, and the rest was to be refunded to the unsuccessful bidders. Some people have criticized this model and suggested that it is not trustable.

One of the main concerns with the auction model is the requirement for bidders to send their entire bid amount to Yuga’s BTC address. This means that bidders were risking their funds by sending larger amounts of BTC to strangers without any guarantee of getting it back if their bid is unsuccessful. This condition, many crypto enthusiasts believe, is contrary to the basic principles of blockchain technology, where decentralization and trustlessness is paramount.

Another issue with the TwelveFold auction model is that the unsuccessful bids must be refunded manually. This means that Yuga Labs would need to notify the unsuccessful bidders and manually initiate the refund process. This process could take a significant amount of time, and the process is not automatic, as it is the case with smart contract-enabled auctions.

In conclusion, the TwelveFold auction model introduced by Yuga Labs, while innovative and exciting, does not seem to have gained the approval of the crypto community. Several concerns with the model have been raised, including the risk of sending large amounts of BTC, and the manual refund process for unsuccessful bidders. The crypto community remains hopeful that Yuga Labs will reconsider the auction rules and incorporate more decentralized and trustless features to their model to build more confidence among bidders.

This article and pictures are from the Internet and do not represent SipPop's position. If you infringe, please contact us to delete:https://www.sippop.com/9825.htm

It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.