The tradition of Newbtowns came about during the very first day of the server. The Reddit Community Center and Fort Gamma, were the first examples of this tradition, and when the NMR first came to power they actively continued to create small settlements with provisions to help new players get out of spawn and on their way to a grisly death (but at least not by starvation).
More recently, DAS IMPERIUM have been building Newbtowns, although many of the members selectively kill some of the people looking for help.
Newbtowns are usually attacked and wrecked, sometimes even by the new players, unless fiercely defended by their constructors, and often must be rebuilt after a player gets carried away with the lava bucket.
The World 4 Newbtown was the staging ground for the Siege of Newbtown event that occured on the 29th of February, with DAS IMPERIUM defending and Team Spearhead (and others) beseiging the fortification.
Newbtowns can be a great help for brand new players, but also a death trap if you go while spawn killers (or bored players) are lurking. Chests in Newbtown can regularly make desperate players terminate their campfire protection early, only to be slaughtered by Diamond-clad murderers.