Clarify the Banishment system?

I read on Discord that someone with a B1 label has actually been banished several times…is this correct?

In trying to find an answer myself, I could only find the one very old Topic describing the banishment system. (How Banishment and Banish Points work / 追放と追放ポイントの仕組み) Is there something more recent that explains the current system? For example, what is this Donkey Town I have heard of?

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Donkey town is a place full of infertile eves with faster hunger, you’re sent there as penace if you’re ever banished. Look it up on youtube its quite interesting even if i wish to never go.

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