The practical utility of a blockchain platform depends on its safety and liveness. A safe blockchain is one where users can expect valid transactions to eventually become recorded in the canonical history, or a linear sequence of finalized blocks. A live blockchain is one where this process can continue indefinitely, as long as there are validators to process, disseminate, and record the transactions in blocks. Actions by validators that constitute a threat to either the safety or the liveness of the blockchain are termed faults.

We can enforce compliance with certain features of the protocol, such as the fields expected to be populated in a block’s metadata, as part of the programmatic protocol definition, and reject all blocks failing to satisfy the conditions as invalid, or faulty. However, some faults cannot be defined as properties of individual blocks, or directly prohibitied by the protocol specification. Rather, they must be incentivized by imposing costs for commission of faults. Direct incentivization of individual validators by these means is only possible with attributable faults, or faults that can be traced to an individual validator. Slashing is the term we use for such incentivization. Specifically, a slashed validator loses some, or all, of the stake, possibly resulting in ejection.

Currently, we only penalize equivocations, though this may change as we develop the platform.

Equivocation faults constitute a direct threat to the safety of the system by making it difficult to settle on a single canonical history of transactions. This reduces value of the system for both users and participants, since the value proposition of a blockchain is precisely that it must eventually finalize a unique history. Equivocation faults are attributable to individual validators and are subject to slashing. Moreover, slashing is necessary because it is not feasible to programmatically forbid validators from equivocating, as equivocation is not a property of a single block or a message. Because equivocations constitute a particularly serious threat to the expected operation of the blockchain and threatens its value to all users and validators, equivocations require a slash value of 1, without a limit imposed by minimum bond.