Slashing

Slashing is the protocol mechanism for penalizing operators (and the restakers delegated to them) for service-level misbehavior. On Tangle, slashing is:

• Proposed on-chain with an evidence hash
• Disputable for a fixed window (default 7 days)
• Executed on-chain after the window closes

Who Can Propose a Slash

The protocol restricts slashing proposals to authorized parties:

• The service owner (customer)
• The blueprint owner (developer)
• A blueprint’s service manager (via an on-chain slashing-origin hook)

Slash Lifecycle

1. Propose
   • proposeSlash(serviceId, operator, amount, evidence)
   • The protocol computes an effective amount by scaling amount by the operator’s service exposure (basis points).
2. Dispute
   • disputeSlash(slashId, reason) can be called during the dispute window.
   • Disputed slashes cannot be executed until resolved (e.g., cancelled by a slash admin).
3. Execute
   • After the dispute window, anyone can execute pending slashes (batched).

How Slashing Affects Restakers

Slashing execution calls into the restaking system and applies O(1) share-based slashing:

• The operator’s self-stake is reduced.
• Delegator pools’ totalAssets are reduced while shares remain constant, so each share becomes worth less.
• Delegator impact depends on blueprint selection:
  • All mode delegations are exposed to all blueprints the operator participates in.
  • Fixed mode delegations are exposed only to selected blueprint IDs.

Slashed value is removed from withdrawable balances (via accounting) and remains in the restaking contract as non-withdrawable surplus.

Security Requirements and Commitments

Services can include per-asset security requirements, and operators can submit per-asset exposure commitments. When those are present, the protocol can scale the effective exposure used for slashing based on the commitments.

Practical Guidance

• Restakers: use Fixed blueprint selection to scope your exposure.
• Operators: avoid accepting services you cannot meet; exposure settings affect both payouts and slashing impact.
• Developers and customers: document slashing conditions and provide a verifiable evidence format.