Misbehaviour Reporting & Reputation

Misbehaviour reporting follows an oracle based approach. The DKG protocol we utilize has identifiable aborts, meaning it is possible to identify the party misbehaving during the protocol’s execution. While every honest party sees this misbehaviour, it is tricky to identify on-chain, as it would require running the protocol itself on-chain and verifying the misbehaviour proof.

Instead of pushing proofs of misbehaviour on-chain, we utilize a threshold voting based approach. For a threshold t and offender o, if t parties report the same misbehaviour containing the type of misbehaviour, the round of misbehaviour, and the offending authority, then the party’s reputation reduces according to the function:

$reputation(o) = \alpha *reputation(o)$

When a good action occurs, such as succesfully rotating keys or signing a proposal and submitting it on-chain. The reputation increases according to the function

$reputation(o) = \alpha * reputation(o) + 1,000,000,000$