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diff --git a/docs/Rules-for-the-node-set.md b/docs/Rules-for-the-node-set.md new file mode 100644 index 0000000..5757d9c --- /dev/null +++ b/docs/Rules-for-the-node-set.md @@ -0,0 +1,41 @@ +# Rules for the Tangerine Network node set + +We introduce the rule for node set and give a brief explanation to the functions in Tangerine Network [governance contract](https://testnet.tangerine.garden/address/0x246FcDE58581e2754f215A523C0718C4BFc8041Fj). + + +## Active condition (permission to be in notary set) + You must deposit enough stake in the governance contract to get the qualification to be selected in the notary set. + Sometimes nodes who violate the rule for notary set will be fined some coin. This leads nodes unqualified to be selected in the notary set. Nodes can be re-qualify after paying the fine. + +## Reward + The reward of each block is calculated as + + block_Reward = mining_Velocity * total_Staked * round_Interval / (365*24*60*60) + + For example, 100 nodes with each staked 1M TAN and mining velocity is 18.75%, the reward of each block is + + 100 * 1M * 18.75% * 1 / (365*24*60*60) = 0.5945586 TAN + + You can find the parameter information via [governance statistic](https://testnet.tangerine.garden/governance) page. + + From the description above, the expected reward for each node in 1 day is + + 100 * 1M * 18.75% * 1 / 365 /100 = 513.7 TAN + +## Penalty +Nodes shall not engage in any of the following conducts: + +1. Forking or trying to fork blocks at the same height by proposing multiple blocks +2. Forking or trying to fork votes by submitting multiple votes in the same iteration in the Byzantine Agreement (BA) +3. Engaging in malicious behaviors in Distributed Key Generation, including without limitation sending wrong secret shares to other nodes, and such behaviors have been complained by other nodes +4. Producing wrong Share-Sig by sending wrong share signature to common reference string (CRS) or in commit-vote +5. Failing to finish distributed key generation (DKG) +6. Failing to propose any blocks during a whole epoch + +For 1. to 4., the entire stake will be confiscated immediately by Tangerine Network. For 5., a fine of the `1 TAN` will be imposed and no blocks can be produced until such fine is paid under the governance contract. For 6., a fine of the `100 TAN` will be imposed and no blocks can be produced until such fine is paid under the governance contract. +<!--- Block Reward*86400/total Node ---> + +Nodes can pay the fine in the governance contract, see [payFine](Governance-Contract.md#pay-fine). + +## Recovery +Currently, Tangerine Network's [recovery](Recovery-Mechanism.md) is built on top of the Ethereum mainnet. All nodes are required to deposit at least **5 Ether** to the same node address. Ether used for recovery will be returned after Tangerine Network successfully recovered. However, if Tangerine Network failed to recover and result in a hard fork, the stakes of nodes that did not deposit enough amount of Ether will be confiscated. |