Section F: Mathematical Models for Various Components
Explore the mathematical framework governing staking mechanisms, reward allocation, and penalty systems in the L1X blockchain network.
How and how much will I get Slashed as a Node?
Slashing would be carried out after the completion of each epoch. Nodes may get slashed for Double Signing, Liveliness Faults, and Safety Faults as detailed below:
Double Signing
A validator is considered dishonest if they sign two different blocks at the same height in the blockchain. This is a clear violation of the protocol rules, as a validator should only produce or endorse one block per slot.
Double signing can be detected by monitoring the network for blocks that have the same height but different block hashes and are both signed by the same validator.
Liveliness Faults
If a validator repeatedly fails to be online and participate in the consensus process (i.e., they miss too many votes), they could be penalized. This ensures that validators have an incentive to maintain a reliable and consistent online presence.
Liveliness faults can be detected by monitoring validators' participation in the network consensus process and noting when a validator is offline or unresponsive for an unacceptable period of time.
Safety Faults
Validators should only vote for one version of the history. If a validator votes for conflicting versions of the blockchain history (e.g., during a network partition), it's a safety fault.
Safety faults can be detected by monitoring for validators casting votes for conflicting versions of the blockchain history.
The slashing penalty is determined based on
where
Offense_Severity represents the severity of the offense committed by the validator.
XScore_Penalty accounts for the validator's XScore which reflects their performance, reliability, and adherence to the rules of the network. A higher XScore indicates a better-behaved validator, resulting in a lower slashing penalty.
Slashing_Dynamics represents the mechanism to discourage malicious behavior based on overall network dynamics and inflation rate.
Stake_Value is the total amount of tokens staked by the offending validator.
Total_Staked_Value is the sum of all tokens staked in the entire network for the 500 cubes.
where
Slashed_Value is the actual value deducted as the penalty from the Staked_Value.
Slashing_Threshold is the cap on the slashing penalty to prevent excessive penalties that could harm the network's stability.
Slashed_Value would be deducted after Slashing_Delay time period.
Rewards to run Full Validator Node.
where
Stake_Value is the total amount of tokens staked by the offending validator.
Total_Staked_Value is the sum of all tokens staked in the entire network for the 500 cubes.
FVN_Reward_Dynamics accounts for the overall dynamics of the reward system, including inflation rates, block rewards, and any other mechanisms that influence the distribution of rewards.
XScore_Reward is a factor that reflects the validator's XScore, which indicates their performance, reliability, and adherence to the network rules. Validators with higher XScores would receive greater rewards.
Rewards would be granted after FVN_Rewards_Interval.
Rewards to run Event Listener Node.
where
Stake_Value is the total amount of tokens staked by the offending validator.
Total_Staked_Value is the sum of all tokens staked in the entire network for the 500 cubes.
ELN_Reward_Dynamics accounts for the overall dynamics based on chains connected and events validated by the ELN.
StakeScore_Reward is a factor that reflects the validator's StakeScore, which indicates their commitment to the network.
Rewards would be granted after ELN_Rewards_Interval.
Rewards to delegate stake into the Protocol Liquidity Pool.
where
Stake_Delegated represents the total amount of tokens staked or delegated by a participant into the liquidity pool.
Total_Liquidity_Pool_Value is the sum of all tokens staked in the entire liquidity pool. It provides the proportion of the participant's stake compared to the total staked amount.
Reward_Liquidity_Pool represents the portion of the protocol's revenue that is allocated for rewards to participants in the liquidity pool.
Protocol_Fees represents the fees charged on each transaction within the liquidity pool. The protocol fees contribute to the reward pool.
How much Rewards can I earn?
Based on the staked tokens for either Full Validator Nodes or Event Listener Nodes or delegation in Liquidity Pools, one can earn rewards accordingly. Exact numbers are never provided and are dependent on the time and the activity on the network.
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