LuxDA Slashing Protocol

Abstract

This LP defines slashing conditions and challenge mechanisms for operator misbehavior.

Motivation

This specification formalizes the component design, ensuring consistent implementation across the LuxDA ecosystem.

Specification

1. Slashing Conditions

Condition	Penalty	Evidence
Double signing	5% stake	Conflicting signatures
DA unavailability	2% stake	Failed retrieval proof
Prolonged downtime	1% stake/day	Missed attestations
Invalid state transition	10% stake	Fraud proof
TFHE key withholding	5% stake	Missing decrypt shares

2. Challenge Protocol

type Challenge struct {
    ChallengeID    [32]byte
    Challenger     Identity
    Accused        Identity
    Type           ChallengeType
    Evidence       []byte
    Bond           *big.Int
    Deadline       uint64
    Status         ChallengeStatus
}

type ChallengeStatus uint8
const (
    ChallengePending  ChallengeStatus = 0
    ChallengeValid    ChallengeStatus = 1
    ChallengeInvalid  ChallengeStatus = 2
    ChallengeExpired  ChallengeStatus = 3
)

3. Resolution Process

1. Challenger posts bond + evidence
2. Accused has response window (24h)
3. If no response: automatic slash
4. If response: arbitration
5. Winner receives loser's bond

4. Fraud Proofs

For state transition challenges:

type FraudProof struct {
    // Claimed invalid transition
    Header       *MsgHeader
    PrevState    []byte
    ClaimedState []byte
    ActualState  []byte

    // Merkle proofs
    StateProof   []byte
}

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LP-6482 v1.0.0 - 2026-01-02

Rationale

The design follows established patterns in the LuxDA architecture, prioritizing simplicity, security, and interoperability.

Backwards Compatibility

This specification introduces new functionality and does not modify existing protocols. It is fully backwards compatible with existing implementations.

Security Considerations

Implementations must validate all inputs, enforce access controls, and follow the security guidelines established in the LuxDA Bus specification.