Penalties

The rewards described earlier incentivize desired validator behaviors. The penalties below exist to deter unwanted validator behaviors:

Double Signing Penalty​

This penalty triggers when a validator signs two different blocks at the same time (i.e. attempts a double spend attack). If double-signing is detected, then the violating validator will be penalized with:

• Burned FRA: burn 5% of FRA staked at validator

  - i.e. if validator staked 100 tokens, then 5 FRA will be burned

Unavailability Penalty​

This penalty triggers when a validator is offline. Since the availability of validators to contribute to voting is critical to securing a PoS blockchain, unreliable validators must be punished when they fall below the performance. For every missing block, 0.00001% of FRA staked at validator will be burned.

• - i.e. if validator staked 100000 tokens, then 1 FRA will be burned when this validator miss one block.