If the loser of an auction was to get his tokens back then it would only be fair for the winner to be refunded his tokens ?
So what would be the point of an auction.
That way bidding will go till round 99, since the guys know that they lose nothing, but can win a Phyrric victory. But maybe after bidding, for every 3rd round they progress they get a token back. There is loss, but only 67% of the previous.