Node inspection
Operator's nodes contain an inspection routine which connects to a target operator's nodes and checks whether they are relaying data in a given stream to validate that the inspected node is doing the promised work. If the inspection fails, operators raise a flag to the Sponsorship smart contract. A number of random Operators are selected as reviewers. The reviewers then also inspect the flagged operator for the flagged stream(-partition), and based on their findings they vote via the smart contract on whether to kick (flag was valid) or not to kick (flag was invalid) the flagged operator. If the majority vote is to kick, the flagged operator is slashed.
Flagging
The nodes form a subjective opinion of whether someone's doing the work correctly or not, and act accordingly. There are incentives to flag and vote honestly, and disincentives for flagging and voting dishonestly. Flagging is the umbrella term used for the node inspection layer on the Streamr Network. Node inspections by flag-voting provide a degree of economic protection for sponsors when they pay for nodes to relay traffic on their selected stream inside the decentralized network.
Flag stake
The flag stake is the amount that operators must put at risk to flag another operator for potential protocol violations. In this case, operators are required to place a DATA stake to initiate a flag against another operator if they suspect a violation. It's important to note that if the flag is ultimately deemed invalid, the operator who initiated the flag will lose the flag stake. Automated spot checks conducted by the node software flag potential violations independently, ensuring protocol integrity.
The flag stake has been set to 50 DATA and is subject to change by Streamr DAO governance vote.
Flag reviewer reward
Each reviewer who participates in the flag review process and votes for the majority result is paid a reward of 20 DATA. This reward serves as an incentive for nodes to actively engage in the validation of flagged operators within the protocol.
The flag reviewer reward has been set to 2 DATA and is subject to change by Streamr DAO governance vote.
Flagger reward
If the flag raised by an operator is deemed valid, the flagger is rewarded with DATA. This reward serves as an incentive for operators to flag potential protocol violations accurately, contributing to the overall integrity and adherence to protocol rules.
The flagger reward has been set to 36 DATA and is subject to change by Streamr DAO governance vote.
Flag reviewer count
The number of operators that are randomly selected to review a flag by inspecting and validating the work of the flagged operator, and then voting whether the flag was valid or not. The voting is stake-weighted.
The flag review count has been set to 7 and is subject to change by Streamr DAO governance vote.
Review period
The duration of time that must pass between the act of flagging and the commencement of the voting process. The node software autonomously carries out reviews and votes on flags if it is selected as a reviewer, eliminating the need for human involvement during the review and voting phases.
The review period has been set to 1 hour and is subject to change by Streamr DAO governance vote.
Voting period
The duration of time allocated for reviewers to cast their votes following the review period. Similar to the review period, the voting process is entirely automated by the node software. Therefore, there is no requirement for human intervention within the specified voting period.
The voting period has been set to 15 minutes and is subject to change by Streamr DAO governance vote.
Flag protection period
If an operator is flagged and the flag is deemed invalid, they can not be flagged again for a short period. Operators are not allowed to fully unstake during an active flag. Therefore, without this protection period, an attacker could prevent an operator from ever unstaking by continuously flagging them. This protection period gives the operator a window of time during which they can unstake if they wish.
The flag protection period has been set to 1 hour and is subject to change by Streamr DAO governance vote.
Minimum delegation period
The minimum delegation period means that delegated tokens cannot be undelegated before a certain time has passed.
This measure aims to counteract potential exploitation strategies that involve rapid cycling between delegation and undelegation to garner disproportionate returns. Establishing a minimum delegation period disrupts such strategies, rendering them impossible. Moreover, it grants Operators increased financial stability and a more predictable timeframe for utilizing the delegated funds effectively.
The minimum delegation period is set to 48 hours and is subject to change by Streamr DAO governance vote.