Challenge & Security Mechanism

Trust is enforced through code and economic incentives. When a Guardian Node detects a discrepancy—like orders executed out of sequence or missing from an epoch—it initiates a challenge. But random accusations aren't enough; our system demands rigorous proof.

This multi-stage validation creates a powerful security mechanism. False challenges result in slashed stakes and temporary exclusion from the network. Valid challenges unlock the Sequencer's locked fees—14 days worth of revenue—distributing them to the challenging nodes. This creates a Mexican standoff: Yamata is incentivized to keep the Sequencer honest to retain revenue, while nodes compete to catch any misbehavior.

The reputation system adds another layer of security:

• Nodes start at 100 points

• Successful validations increase score

• Failed challenges and downtime reduce it

• Higher reputation means better rewards and lower slashing risk