Reputation Score Ranges

Reputation score ranging from 0 to 1000 is assigned to Validating Nodes (VNs), which affects their rewards and their ability to participate in validation. All nodes start with a base score of 500 and can increase or decrease their score based on their performance.

Reputation Score Ranges

As seen in the Reputation Table bellow, the node's reputation range determines two critical factors: the slashing tax applied when withdrawing rewards and the potential exclusion from validating.

Reputation Range	Slashing Tax	Exclusion from Validating
800-1000	0-10%	No Exclusion
600-799	10-20%	1-6 hours
400-599	20-30%	6-24 hours
200-399	30-50%	1-7 days
0-199	50-100%	7-14 days

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Reputation Calculation:

The reputation score is calculated as:

$$Reputation = Base\ Score + (Success\ Points) - (Penalty\ Points) - (Inactivity \ Points)$$

Where:

• Base Score: The starting score, which is 500 for all nodes.

• Success Points: Earned from successful validations and challenges.
• Penalty Points: Deducted for failed validations, invalid challenges, or misconduct.
• Inactivity Points: Lost due to inactivity or extended downtime.

This system incentivizes good behavior while holding VNs accountable for failures or misconduct. The higher the reputation score, the lower the slashing and exclusion penalties, encouraging nodes to maintain their great reputation in the network.