Penalties & Slashing
Overview
To maintain the integrity of the QuStream network, node operators must meet specific uptime, performance, and security requirements. Failing to meet these standards can result in penalties or slashing, ensuring that only reliable and secure nodes participate in the ecosystem.
This guide covers:
🔹 What is Slashing?
🔹 Penalties for Validators & Encryption Nodes
🔹 Security Violations & Fraud Prevention
🔹 Appeal Process for Penalized Nodes
What is Slashing?
Slashing is a penalty mechanism designed to punish misbehavior or poor performance by node operators. A node that fails to meet network standards can lose a portion of its staked QST or be removed from the active set.
Slashing occurs for:
- Excessive downtime – Nodes that fall below uptime thresholds.
- Double signing – Validators attempting to sign conflicting blocks.
- Security breaches – If a node is compromised or engaged in fraudulent activity.
Learn More → Node Monitoring & Maintenance
Penalties for Validators
Validators are responsible for transaction validation, network security, and consensus participation. As such, they must maintain high availability and honest behavior.
| Violation | Penalty |
|---|---|
| Uptime < 99% (3-day period) | Reduced staking rewards & revenue share payout |
| Missed block proposals | Temporary suspension from rotation |
| Double signing blocks | 10% of staked QST slashed + removal from network |
| Security breach | Permanent slashing & blacklisting |
🔹 Slashing penalties scale based on severity.
🔹 Repeated violations result in permanent removal from QuStream's validator set.
🔹 Validators can avoid slashing by maintaining uptime and ensuring secure key management.
Learn More → Consensus Mechanism (PoS) & Rotation
Penalties for Encryption Nodes
Encryption Nodes generate and distribute dynamic encryption keys while maintaining decentralized data sharding. They must ensure high uptime and processing capability.
| Violation | Penalty |
|---|---|
| Uptime < 99% (3-day period) | Reduced staking rewards & revenue share payout |
| Failed encryption requests | Temporary suspension from key generation |
| Unauthorized data access attempt | 20% staked QST slashed + removal from network |
| Malicious behavior or tampering | Permanent slashing & blacklisting |
🔹 Unauthorized access attempts trigger automatic slashing.
🔹 Repeated violations lead to permanent banning from QuStream.
Security Violations & Fraud Prevention
To protect users, transactions, and encryption keys, strict security measures are enforced:
✔ Encrypted communication channels between all nodes.
✔ Automated detection of suspicious activity.
✔ On-chain tracking of slashing incidents and penalties.
✔ Auditable logs for all validator and encryption node actions.
If a node is found to be acting maliciously or attempting unauthorized data access, it will be permanently blacklisted, and its staked QST will be burned.
Appeal Process for Penalized Nodes
If a node is wrongfully penalized, the operator can submit an appeal through the governance system.
Steps for Appeals
1️⃣ Submit an appeal request via the QuStream governance portal.
2️⃣ Provide logs and evidence showing that the penalty was incorrect.
3️⃣ Validator and Encryption Node operators vote on appeals via governance.
4️⃣ If approved, the penalty is reversed, and lost rewards are refunded.
5️⃣ If rejected, the penalty remains, and the node operator must improve their performance before reapplying.
Conclusion
Slashing and penalties protect QuStream's integrity by ensuring that only high-quality, secure, and reliable nodes remain active. By maintaining strong security, uptime, and performance, node operators can maximize rewards and contribute to network stability.
Next Steps
- Learn How to Run a Validator Node
- Learn How to Run an Encryption Node
- Explore QST Tokenomics