Slashing

Slashing is a penalty mechanism within the Impossible Cloud Network (ICN), designed to ensure that Hardware Providers (HPs) consistently meet network standards. If an HP violates their obligations, a portion of their locked collateral is slashed, protecting network reliability and incentivising consistent performance.

How Slashing Works

Slashing penalties are triggered by Service Downtime, detected by Hypernodes.

Slashing Timeline

Slashing operates on an era-based system. Collateral remains exposed to slashing from the moment of staking (Era E-2) until slashing has been evaluated and executed (end of Era E+1).

Slashed Collateral Usage

Slashed collateral is transferred to the Protocol Treasury.

For additional details, refer to the Collateral and Delegation pages.