A coordinated group of validators (maximum: 80) secure the Secret Network. Each validator uses Tendermint, a Byzantine fault-tolerant Delegated Proof-of-Stake (DPoS) consensus engine. Each validator stakes their SCRT coins and coins from delegators to earn rewards by successfully running the protocol, verifying transactions, and proposing blocks. If they fail to maintain a consistent (downtime) and honest node (double-signing), slashing penalties will occur, resulting in coins deducted from their account.
All SCRT holders can become a Secret Network validator or delegator and participate in staking and governance processes.
Slashing for downtime is based on actual block times and NOT theoretical block times, such as
MinSignedPerWindownetwork parameters. Validators signing less than MinSignedPerWindow blocks out of every SignedBlocksWindow will experience a downtime slash.
Parameters: 11250 blocks out of every 22500-blocks
- For a block time of 6.8 seconds, it roughly translates to being up for less than 21.25 hours out of every 42.5-hour window.
- For a block time of 6.4 seconds, it roughly translates to being up for less than 20 hours out of every 40-hour window.
- Slashing of 0.01% of the validator and its delegators' staked SCRT
- Jailing of validators for 10 minutes. Validators do not earn block rewards for the jailing period and must manually unjail their node with:
secretd tx slashing unjail --from <key-alias>
Slashing for double-signing is when the validator signs the same block twice. This happens most commonly during migration, and the original validator node is not shut off appropriately, and their
priv_validator_key.jsonis running on two machines at the same time. The best way to avoid double signing is by using a remote signer such as the TenderMint Key Management System (TMKMS) or Horcrux.
- A validator signs the same block height twice
- Slashing of 5% of the validator and its delegators' staked SCRT
- Jailing forever (tombstoned) of the validator node
- A tombstoned validator cannot earn block rewards anymore, and its delegators must re-delegate their SCRT to another validator
The Secret Network uses the same slashing penalties as Cosmos. Burning SCRT through slashing validators for downtime and/or double-signing discourages poor practices and dishonesty by protocol-recognized actors. If slashing occurs frequently, a validator may lose their ability to vote on future blocks for some time.