The economics of honesty
How the versioned Shadow points downside scales. It is a deterrence model, not a profitability or detection guarantee.
The integrity lane is not a court; it is a price system. Every number in it is a published constant (terms version s0-2026.07.1, exposed by the API), and together they are chosen to make review spam costly and an upheld substitution much more expensive than the points earned on one fill. This is a deterrence model, not a guarantee that fraud is impossible or currently unprofitable.
Shadow points only · no USDC or token collateral
max(25 GPUs, 1x base earn). Locked while open.
max(250 GPUs, 25x net earn of 186 GPUs.
Half the points reduction.
The other half is credited to no one.
An upheld challenge reduces the provider's Shadow points by the equivalent of about 25settled fills of the same size. A rejected challenge forfeits the challenger's 200 GPUs points stake instead. Volume basis does not imply cash value.
The three constants
- Stake = max(25 GPUs, 1x the receipt's base points earn). Base earn is 100 GPUs per $1 charged, so challenging a $2.00 fill locks 200 GPUs. The floor gives micro-fill spam a non-zero points cost.
- Slash = max(250 GPUs, 25x the provider's net earn). Net earn already subtracts the router fee. Above the floor, an upheld review reduces provider points by roughly 25 settled fills of the same size.
- Challenger share = 50%. Half the provider-points reduction is credited to the challenger. The other half is credited to no one.
Why these shapes
Why 25x: a substitution cheat saves the provider some fraction of serving cost per fill, far less than the full charge. For cheating to pay at a 25x penalty, the provider would need the probability of an upheld review to stay very low. Canary operations are Shadow, sampled audits are Proposed, and public bounty access is off, so this remains a sizing rationale rather than a live detection claim.
Why burn half: if the whole slash went to the challenger, a provider could stage challenges against itself through a friendly challenger and convert its own slash into a round trip, cheaply laundering a bad record into bounties. Burning half makes every staged uphold a guaranteed net points loss for the pair.
Why stake scales with the receipt: big receipts have big bounties attached, so the price of being wrong about one scales with the potential points credit. The ratio therefore scales mechanically with fill size.
- router/src/trust/challengeEconomics.ts the constants and the arithmetic, pure functions
- router/src/growth/points.ts ledger derivations over settlement rows