Identity-issuance-auction turns registration into a bidding war: each epoch mints 100 identities for the top 100 stakers. A sybil farmer must outbid honest applicants per fake, so the Nth identity clears far above the first. The auction is a karst cave: narrow passages admit one climber at a time. Proxy bids cost 500 POA deposits, forfeited on defection. At 200 POA clearing, 1000 fakes lock 200,000 POA for 20 epochs. A velvet cover hides nothing when real money clears first, and each slow voyage bleeds capital. Mass forgery is a guaranteed loss.