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Rewards & Slashing

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Earning Model

Nodes earn fees for successfully completing inference tasks. Fees are determined by:
FactorImpactDetails
Task complexityBase feeMore complex prompts earn more
Model tierMultiplierPremium APIs (Groq, Gemini) earn premium rates
Attestation tierMultiplierTier 1 (TPM) earns 1.5x, Tier 2 (TEE) earns 2x
Reputation scorePriorityHigher scores get priority assignment

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Fee Distribution

Total Task Fee
├── Leader Fee (60%)
│   └── Base + Complexity Multiplier
├── Verifier Fee (20% each, 2 verifiers)
│   └── Base Fee
└── ICL Coordinator Fee (10%)
    └── Infrastructure costs
Note: Exact percentages are configurable by the ICL and may vary by task type.

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Reputation System

Reputation scores range from 0 to 10000.

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Gaining Reputation

ActionReputation Gain
Successful job completion+100
Verifier matching leader+50
Consistent uptime (30 days)+500
Tier upgrade (mock → TPM → TEE)+1000 per tier

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Losing Reputation

ActionReputation Loss
Verifier no-match (wrong result)-200
Missed heartbeat (within grace period)-10
Missed heartbeat (outside grace period)-100
Failed attestation-500
Timeout on assigned job-300

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Slashing Conditions

Nodes may be slashed (lose stake/rewards) for:

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1. Failed Attestation

Condition: Attestation certificate expired and auto-re-attest failed. Consequence:
  • Removed from active pool
  • Cannot receive new assignments
  • Existing assignments may be reassigned
Recovery: Fix connectivity issue, restart daemon. Auto-re-attest will retry.

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2. Missed Heartbeat

Condition: No heartbeat within HEARTBEAT_GRACE_SECONDS (default: 300s = 5 minutes). Consequence:
  • Temporarily removed from active pool
  • Reputation penalty
Recovery: Resume heartbeats. Node re-enters active pool after next successful heartbeat.

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3. Bad Inference (Verifier Mismatch)

Condition: Verifier consensus shows leader produced wrong result. Consequence:
  • Leader reputation penalty (-200)
  • Potential stake slashing (if stake > 0)
  • May be temporarily excluded from leader role
Recovery: Fix model configuration, ensure determinism. Run determinism test: 
blindference-node test-determinism --model qwen2.5-7b --prompt "Hello, test"

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4. Job Timeout

Condition: Failed to submit result within execution window (default: 600s). Consequence:
  • Reputation penalty (-300)
  • Job reassigned to another node
  • No fee earned
Recovery: Check inference performance, network connectivity.

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5. Double-Claiming

Condition: Node claims a job but doesn’t submit result, preventing reassignment. Consequence:
  • Reputation penalty (-500)
  • Potential temporary ban
Recovery: Ensure job handler doesn’t crash between claim and submit.

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Insurance & Coverage

The Reineira protocol provides insurance for inference tasks:
  • User pays premium when submitting request
  • Coverage amount is set based on task value
  • If result is disputed and verified as incorrect, insurance pays out to user
  • If result is correct, premium is distributed to nodes and ICL
Nodes benefit from coverage because:
  • More tasks are submitted (users feel protected)
  • Higher-value tasks are available
  • Dispute resolution is automated

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Reward Claiming

Rewards accumulate in the RewardAccumulator contract on Arbitrum Sepolia.

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Claiming Process (Future)

The blindference-node withdraw command will:
  1. Query accumulated rewards from contract
  2. Submit claim transaction
  3. Transfer rewards to node wallet
Current status: Withdrawal is a stub in v0.3.0. Rewards are tracked on-chain but claiming is not yet implemented.

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Best Practices

  1. Monitor reputation: Keep reputation score > 5000 for priority assignments
  2. Maintain uptime: Heartbeat every 60s, avoid extended downtime
  3. Run determinism test: Before going live, verify model produces consistent outputs
  4. Use stable network: Avoid mobile or unstable connections
  5. Keep logs: Log retention helps debug disputes
  6. Update regularly: New versions may have performance improvements and bug fixes