HIP-31: Slashing Reward Distribution

This Harmony Improvement Proposal (HIP-31) aims to determine the parameters included in the slashing mechanism.

The current implementation looks as following:

Validator's self-owned stake slashed by 50%:

Let's say the validator initially holds a stake of 10,000 ONEs. After the slash, the validator's stake will be reduced by 50%, resulting in a new stake of 5,000 ONEs.

Example: Initial stake: 10,000 ONEs Slash percentage: 50% Slashed stake: 0.5 * 10,000 = 5,000 ONEs

External delegators' stake slashed by 80% of the leader's self-owned slashed stake, proportionally to their stake:

Let's assume there are three external delegators (A, B, and C) who have delegated their ONEs to the validator. Each delegator has a specific stake (A_stake, B_stake, C_stake). We'll calculate the slash amount for each delegator based on the leader's self-owned slashed stake.

Example: Leader's self-owned slashed stake: 5,000 ONEs Delegator A stake: 20,000 ONEs Delegator B stake: 30,000 ONEs Delegator C stake: 50,000 ONEs

To calculate the slash amount for each delegator, we need to determine the total stake (A_stake + B_stake + C_stake), which in this case is 20,000 + 30,000 + 50,000 = 100,000 ONEs.

Slash amount for Delegator A: Slash percentage: 80% Slash amount: (80% of 5,000) * (20,000 / 100,000) = 800 ONEs

Slash amount for Delegator B: Slash percentage: 80% Slash amount: (80% of 5,000) * (30,000 / 100,000) = 1,200 ONEs

Slash amount for Delegator C: Slash percentage: 80% Slash amount: (80% of 5,000) * (50,000 / 100,000) = 2,000 ONEs

In this example, the validator's self-owned stake is slashed by 50% (from 10,000 to 5,000 ONEs), and each external delegator's stake is slashed by a proportionate amount based on their stake and the leader's self-owned slashed stake. Delegator A's stake is reduced by 800 ONEs, Delegator B's stake is reduced by 1,200 ONEs, and Delegator C's stake is reduced by 2,000 ONEs.