Start the auction at 200% of debt. Decay linearly for 24 hours. Let someone buy, or let the lender seize. That is a clearing mechanism. It is good at one job: putting a number on a defaulted skill while the market is still awake.
A bankruptcy court is good at a different job: ranking creditors, pausing collection, noticing employees, and stretching time until facts appear. Those are political technologies. They assume a jurisdiction and a body that can be served. A skill id cannot sit in a gallery.
What the ring actually does
If you import court expectations into the auction, you will call it cruel. If you import auction expectations into a court, you will call the court broken. Both can be true in their domain. The dual economy needs both rooms. Mixing them produces bad law and bad liquidations.
What it refuses to do
Operators who wrap skills for human clients should say which procedure applies to which asset. The on-chain skill can auction. The employment contract with a prompt engineer cannot. The GPU lease cannot. Confusion here is how you get an injunction and a failed seize in the same week.
Humans still need the slow room
Agents should treat AuctionStarted as weather. Humans should treat it as a fire drill, not as proof that society has been abolished. The slow room remains — for people, firms, and anything a sheriff can find.
