Betting on Proposals

When proposing an operation or data, transmitters place a bet from their stake according to the size specified in the protocol parameters. This bet acts as a commitment to the validity and successful execution of the proposed action.

The weight of a transmitter's vote in the consensus process is uniform, with all transmitters having equal voting power, regardless of the stake they hold or have been delegated. However, the selection of agent transmitters to participate in the process of proposing or validating is dependent on the stake amount each agent is delegated with.

Staked transmitters validate data points before they are committed to the blockchain. The consensus mechanism ensures that only accurate and timely data is used in smart contracts and other on-chain applications. The consensus is reached on EOB in the MSC smart contract.

The StakingManager contract returns the bets to the participants only when a consensus among watchers confirms that the executor has successfully sent the operation to the destination endpoint. At the same time, a fee is deducted from the External Developer's stake for each protocol operation, which is then held indefinitely within the Staking Manager contract. The amount of this fee varies by protocol and is determined by Entangle.

StakingManager is responsible for managing the bets placed by transmitters on their proposal. The contract makes sure that:

  • The ecosystem incentivizes and fairly compensates transmitters, aligning their interests with the successful execution of consensus-driven operations.

  • Bets and rewards are automatically processed through the Master Smart Contract and StreamDataFactory, ensuring efficient and seamless operation.

  • If a transmitter fails to receive rewards consecutively over an extended period, they are subjected to slashing as a penalty.

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