Validation Example

Here is an example using $SLEEP as a data token, though the specific data token will vary depending on the dataset.

Example of Data Validation Process Using $SLEEP and $SVN Tokens

Data Submission and Staking

• [1] Initial Data Assertion: A data producer submits a data point along with a stake of 128 $SVN. This stake is an assertion of the data's accuracy.

Pro-rata Block Rewards

• [2] Verification Staking: Validators stake $SVN if they believe the data should be accepted and are then eligible for a pro-rata portion of the $SLEEP block rewards.

Data Accepted

• [3] No Dispute Acceptance: If no objections are raised within one day the data is accepted.

• [4] Stake Return: The data producer gets their $SVN back.

• [5] Producer Rewards: The data producer gets ~2048 $SLEEP based on the bonding curve

• [6] Validator Rewards: Validators that voted to accept the data receive pro-rata shares of 128 $SLEEP block rewards. For example if Validator A stakes 96 $SVN and Validator B stakes 32 $SVN, then Validator A will receive 96 $SLEEP and Validator B will receive 32 $SLEEP.

Dispute

• [7] Dispute Initiation: However, if any validator disputes the data's accuracy, they can initiate a dispute by staking 64 $SVN. This action challenges the initial approval and prevents the data from being accepted into the dataset for at least 2 days. The data is now in a rejected state. By default if nothing happens the data will be rejected.

Escalating Stakes

• [8] Response to Rejection: To counter a rejection, another validator can support the data by staking 32 $SVN. This stake challenges the rejection and also puts the data in an accepted state for 4 days, allowing more time for further validation or challenges.

• [9] Further Dispute Escalation: If the data's validity is still in question, the stakes can continue to escalate. For example, a subsequent stake of 16 $SVN within 4 days of the original challenge can once again shift the decision, pushing it towards rejection or acceptance based on the new stakes and validations that come in.

Threshold and Curatorial Review

• [10] Decision Threshold Reached: The pool has reached 240 $SVN and now the decision is up to the curator to accept or reject the data.

• [11] Curatorial Evaluation: The curator evaluates all stakes, claims, and disputes to make a final decision if the data should be accepted or rejected. If the curator decides to accept the data, the data producer retrieves their initial 10 $SVN along with 2048 $SLEEP based on a bonding curve. Validators who supported the data's acceptance share in the block rewards.

• [12] Curator Compensation: For their work the curator gets 24 $SVN.

• [13] Correct Support Redistribution: If the curator decides to accept the data after reaching the threshold, validators who supported the data's acceptance receive a pro-rata distribution of the $SVN staked by those who incorrectly challenged the data’s accuracy.

Data Rejection

• [14] Rejection Redistribution: If the curator rejects the data or if no counterclaims are made from disputes in [8] or [10] and the data is rejected.

• [15] Pro-rata Redistribution on Rejection: The data producer [1] loses their initial stake of 128 $SVN. This stake, along with the $SVN from validators who supported the data’s acceptance, is redistributed to the validators who successfully challenged the data’s accuracy.

• [16] No Reward Issuance: If the data is rejected, no $SLEEP rewards are issued, ensuring rewards are only linked to verified, accurate data.