Sampling & Slashing

How Local Protocol verifies diffusion-derived economic outputs through sampling and deters dishonesty through bond slashing.

Local Protocol verifies diffusion-derived economic outputs through sampling and deters dishonesty through slashing. Participants submit bounded, optimistic claims with transcripts; verifiers check sampled openings against committed snapshot roots.

Key Concepts

  • Probabilistic verification: only a bounded number of transcript walks are checked.
  • Canonical randomness: removes prover choice (prevents grinding).
  • Penalization: invalid openings cause bond slashing and claim rejection.

Canonical randomness and delayed sampling

For a transaction id txid in epoch , the prover’s transcript randomness is derived from . Sampling indices used for challenges are derived from future randomness (e.g., ) so the prover cannot adaptively craft transcripts that only satisfy the checked parts.

What gets slashed

Claims include a bond . If any sampled transcript opening fails verification, the protocol:

  • rejects or reverts the claim output
  • slashes the bond (and any additional penalties defined by policy)

This makes dishonest inflation negative expected value under appropriate parameter selection.

Where the details live

The precise transcript format and verifier checks are defined by the claim protocol:

Next Steps

The next topic, Self-Policing, will explore how these incentives shape counterparty selection and discourage transacting with dishonest regions.