☹️Penalty Rules

☹️Penalty Rules

In order to ensure the stability and high availability of the network, we design an optimized penalty mechanism and provid users with the option to exit early. Below are the detailed rules and descriptions.

1. Basic Penalty Rule

Rule:

• For every 1 minute of downtime, 0.01% of the current total reward will be deducted.

Formula

$$Pbase=R×0.0001$$

where

• $Pbase$ is the base deduction amount.

• $R$ is the current total reward of the node.

2. Stage Penalty Rule

Rule:

• For every 200 minutes of total downtime, the penalty multiplier permanently increases by 0.01%.

Formula:

$$Pn=R×(0.0001+0.0001×n)$$

where

• $Pn$ is the amount of deduction penalty in the nnth stage
• $n$ = total downtime / 200 minute

3. Early Exit Rule

During the testnet, all L1 nodes are expected to participate till the end of the testnet. If they quit early in the middle, they will be penalized.

Rule:

• Users can initiate a withdrawal request to the network at any time, and the remaining rewards will be penalized by 60% when withdrawing.

Formula:

$$Rexit=R×(1−0.60)$$

where

• $Rexit$ is the remaining reward after early exit
• $R$ is the current total reward of the node

Future Onboarding Rules

Probationary Period

Any new Guardian node joining Titan will be subject to a probationary evaluation. The length of the period is 17280 block heights (each block height = 5 seconds) of the Titan network. Nodes do not earn any rewards during the probationary period to ensure that the stability, resource quality and security of the node is fully validated. During the expedition period, Validator schedules Guardian to conduct a thorough inspection of newly joined nodes to determine whether they meet the requirements and to rule out potential malicious behavior. If the node passes the evaluation after the probationary period and its quality of service meets the requirements, it will start to earn rewards. The purpose of the probationary period is to ensure that only nodes that meet the criteria are able to participate in the Titan network, thus guaranteeing the stability and security of the network.

Cooling-Off Period

All Guardian nodes that leave the Titan Network are subject to a cooling-off period. The length of the cooling-off period is set at 51840 block heights (each block height = 5 seconds) of the Titan Network. The countdown to the cooling-off period begins as soon as the user initiates a withdrawal request on the chain. During this period, nodes must remain online and continue to contribute resources. During the cooling off period, nodes will continue to receive the appropriate rewards. At the end of the cooling-off period, users can retrieve their stakes and rewards. If a Guardian node forcibly withdraws during the cooling-off period, the Titan network will impose penalties to protect the interests of its customers and the stability of the network.

Through these regulations and adjustments, we hope to ensure the quality and stability of the nodes on the Titan network and provide a safe and secure operating environment for all participants.