Reward Distribution & Burn Model

Rewards, Slashing, and Score

Reward Function (example)

Let:

• S_i = stake of validator i

• Q_i = quality score (0–1) from audits/challenges and timeliness

• W = epoch reward pool (in $LATT)

• Σ over active validators in epoch

Per-epoch reward:

R_i = W · ( (S_i^α · Q_i^β) / Σ(S_j^α · Q_j^β) )

Typical exponents: α=0.7 (diminishing returns on stake), β=1.0 (linear quality). Quality subscores can include:

• Accuracy (challenge success rate)

• Timeliness (median attest latency vs SLA)

• Availability (signed heartbeats)

Slashing Conditions (examples)

• Equivocation: signing conflicting results for the same batch → slash %stake and lockout epoch.

• Malformed Attests: repeated invalid envelopes above tolerance → small progressive slashes.

• Censorship: provable refusal to attest while online → penalty to Q_i.

Slashing events are anchored and visible in the governance dashboard.