This came up in the game. I just winged it, but I'm wondering what the official answer is. I'd look it up, but as I've mentioned before, I can't find the book. Aargh!
Anyway... in a challenge, do the loser's coins get spent? One player, in a traditional pirate story, said a character was an expert synchronized swimmer. I challenged, saying that that was silly in a historical pirate story. She added another coin, as did I. She added another and modified it so that she used to practice swimming in tandem with her sister. I relented.
Should I have lost my coins that I used to challenge? I don't remember whether I did or not in the game, but I'm wondering what to do next time.
On page 26, it says "All coins bid from any side go to the bank."