Liveliness Bonding: Penalties and Slashing Terms
Liveliness Bonding: Penalties and Slashing Terms
The Itheum Bonding is a decentralized mechanism used to incentivize good Data Creator behavior and penalize nefarious bad Data Creator behavior or misuse or neglect of their "obligations" as a Data Creator. Ultimately, this system will incentivize both Data Creators and Data Consumers and benefit everyone in the ecosystem and community. By continuing to use the Itheum protocol as a Data Creator or a Data Consumer, you agree to abide by the below terms (see sections specific to Data creators and Data Consumers).
As a Data Creator
You agree to deposit the full Bond Amount for the required Bond Period.
You understand and accept that this is not a payment for the Minting of Data NFTs, but it's required to prove your reputation and commitment to be a good participator in the itheum protocol ecosystem and (your obligations) to fulfill the terms of use mentioned in this document https://itheum.com/legal/datadex/termsofuse which I also agreed to when I minted.
You understand and accept that by depositing a bond, and if you are flagged by the community and by the Itheum Trailblazer DAO as not meeting your obligations, then you could lose part or all of your bond via the penalty and/or slashing mechanism.
You understand and accept that multiple penalties can be enforced on your bond or a complete slash can be enforced as well, resulting in partial or complete loss of your bond if you fail to meet your obligations.
You understand and accept that the Itheum Trailblazer DAO could warn you before enforcing any penalties or slashes, this warning will be made public on the Trailblazer DAO discussion form or (if you are a verified creator), via your contact details. It will be your responsibility to proactively check for these warnings and respond. You also accept that the Itheum Trailblazer DAO could take action without any warning as well in rare circumstances and enforce partial penalties or complete slashes on your bond amount.
You understand and accept that the Itheum Trailblazer DAO will progressible become decentralized over time but initially it will be operated transparently by admins nominated by the itheum protocol core contributor team. But all decisions and actions will be taken publicly for everyone to witness.
You understand and accept that any decisions made by the Itheum Trailblazer DAO are final.
You understand and accept that on top of enforcing partial penalties or full slashing on your Bond, the Trailblazer DAO, in extreme cases of misuse, may also freeze or wipe any circulating Data NFTs.
You understand and accept that any slashed bond amounts can be distributed back to any impacted community members. The exact mechanism of how this is done will be solely under the oversight of the Trailblazer DAO.
You understand and accept that after the bond period, you can withdraw your remaining bond (minus any penalties or slash amounts).
You understand and accept that if your total penalties are greater or equal to the early withdrawal penalty amount, then you will forfeit the entire bond and will not be liable to get any remaining bond amounts back.
You understand and accept and accept that if you can withdraw your bond before the "bond period" expiry date, you will lose a Trailblazer DAO-determined percentage for your early exit. This is non-refundable under any circumstances.
You understand and accept that you can continue to "renew" your bond to continue signaling to the community that you will fulfill your obligations.
You understand and accept and accept that the Bond amount can be increased at any time, even after you have deposited a bond. It's your responsibility to take the necessary actions to withdraw and renew your bond at any new amounts to ensure you signal to the community your commitment to fulfill your obligations.
You understand and accept that the bond amount relative to the bond period, determines your "liveliness score" which is used by the public to understand your reputation and commitment to meet your obligations. The liveliness score will be publicly displayed in multiple Itheum protocol platforms, apps, tools, and (potentially related 3rd party platforms) and will be associated with the public blockchain address that you used for minting the Data NFT.
You understand and accept that the public will be able to see your liveliness score linked to the public blockchain address and be able to use this information in any way they choose.
You understand and accept that it is your responsibility to proactively monitor your liveliness score and if it's running low or expired, to ensure that you renew your bond as needed.
As a Data Consumer:
You understand and accept that a Liveliness Score is shown for each Data NFT and NOT specific to a Data Creator. The liveliness score is derived by using the bond amount relative to the bond period and signals a Data Creator's reputation and commitment to meet their obligations of minting a Data NFT.
You understand and accept that it's your responsibility to use the Liveliness Score to make an informed decision when you buy, lease, or use a Data NFT. But you accept that this alone is not sufficient to guarantee bad behavior or outcomes of your actions related to the Data NFT and you void the Itheum protocol of any specific responsibility related to outcomes of bad behavior from data creators who may still maintain a high Liveliness score but choose to exploit the community via nefarious means.
You understand and accept that it's your responsibility to proactively use the Itheum Trailblazer DAO community forum and tools to inform the DAO admins of any nefarious behavior that you want to investigate.
You understand and accept that it's your responsibility to proactively monitor the Itheum Trailblazer DAO community forum for any notices related to any Data NFTs that you may own that are impacted by some ongoing dispute or nefarious actions from bad Data Creators.
You understand and accept that it's your responsibility to proactively monitor the Itheum Trailblazer DAO community forum for any notice provided by the DAO admins of "compensation" amounts you may be entitled to in the event there has been a compensation fund creators to reimburse impacted Data NFT holders of a penalized or slashed Data NFT collection. Once you see such notices, it is your responsibility to use the Data DEX to follow any instructions to claim your compensation during a fixed "compensation window". If you miss the "compensation window" for any reason, you accept and understand that your compensation may be distributed to other impacted Data NFT holders who actively engaged with the compensation process.
For any questions and notices, please contact us at: privacy@itheum.io
Document Version: 1
Effective Date: Apr 11, 2024
Last Updated Date: Apr 11, 2024
Last updated