Rewards & Slashing

Vote correctly and you earn rewards. Vote incorrectly and you lose part of your stake. This page explains exactly how the math works.

What Makes a Vote Correct?

Your vote is correct if you predicted the outcome:

• Vote FOR a submission that wins → Correct
• Vote AGAINST a submission that loses → Correct
• Vote FOR a submission that loses → Incorrect
• Vote AGAINST a submission that wins → Incorrect

The direction doesn't matter. What matters is whether you were right.

If You're Correct

You receive:

1. Your full stake back
2. A share of the voting pool - proportional to your stake relative to all correct voters
3. A share of slashed tokens - tokens taken from incorrect voters, also proportional

The formula: Your Reward = (Your Stake / Total Correct Stakes) × (Voting Pool + Slash Pool)

Bigger stakes earn bigger rewards. But there's a catch: the more correct voters there are, the smaller each person's share.

If You're Incorrect

You lose a percentage of your stake. The slash percentage is set by the program (typically 5-15%).

Slash Amount = Your Stake × Slash Percentage

You get back your stake minus the slash. Those slashed tokens go to correct voters.

Example

Program: 1,000 token voting pool, 10% slash, Top 2 winners

Results: App A wins (+800 net votes), App B wins (+500), App C loses (+100), App D loses (-200)

Voters:

• Alice: 400 stake FOR App A (winner) → Correct
• Bob: 300 stake FOR App B (winner) → Correct
• Carol: 200 stake FOR App C (loser) → Incorrect, loses 20 (10%)
• Dave: 300 stake AGAINST App D (loser) → Correct
• Eve: 100 stake AGAINST App A (winner) → Incorrect, loses 10 (10%)

Calculations:

• Total correct stakes: 400 + 300 + 300 = 1,000
• Total slashed: 20 + 10 = 30
• Pools to distribute: 1,000 + 30 = 1,030

Payouts:

• Alice: 400 stake + 412 reward = 812 tokens
• Bob: 300 stake + 309 reward = 609 tokens
• Dave: 300 stake + 309 reward = 609 tokens
• Carol: 200 - 20 = 180 tokens back
• Eve: 100 - 10 = 90 tokens back

Managing Risk

Diversify. Don't put everything on one submission. Spread across 3-5 votes so a single wrong prediction doesn't wipe out your gains.

Match stake to confidence. Very confident? Stake more. Uncertain? Stake less or skip.

Check the slash rate. 5% slash is forgiving. 20% is aggressive. Adjust your approach accordingly.

Next Steps

Voting Strategies →