The Inference.net Staking Protocol is being tested on Solana Devnet with test tokens. These tokens have no monetary value and should not be used for real-world transactions or bought or sold by anyone.

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Security Overview

To maintain network reliability and prevent malicious behavior, the protocol supports two primary security mechanisms:

  1. Halting: Temporary suspension of certain actions to allow investigation
  2. Slashing: Permanent penalty for severe violations, affecting only operator stake

These tools are controlled by designated authorities and include safeguards to protect delegators.

Delegated tokens are always protected from slashing. Only an operator’s own stake can be penalized for violations.

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Halting Mechanism

Halting allows authorities to temporarily restrict actions while investigating potential issues. This prevents further harm without permanent penalties.

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Types of Halts

  1. Global Halts

    • Controlled via the PoolOverview account
    • Can halt:
      • All staking operations (is_staking_halted)
      • All withdrawals/unstaking (is_withdrawal_halted)
      • Reward accruals (is_accrue_reward_halted)
      • New pool creation (allow_pool_creation)
    • Used for network-wide emergencies or maintenance

  2. Pool-Specific Halts

    • Sets halted_at timestamp on individual OperatorPool
    • Restricts operator actions like:
      • Staking/unstaking
      • Claiming rewards
      • Withdrawing commissions
      • Closing the pool
    • Delegators can still unstake and withdraw their funds
    • Initiated by program halt authorities

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Halt Process

  • Halt authorities invoke set_halt_status instruction
  • For pool halts, sets current timestamp as halted_at
  • Halts can be reversed by setting halted_at to None
  • Used to freeze suspicious pools during investigation

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Slashing Mechanism

Slashing is a permanent penalty for confirmed violations, designed to economically disincentivize malicious behavior.

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What Gets Slashed

  • Only the operator’s self-stake (from their staking record)
  • Accrued but unclaimed:
    • Token commissions
    • USDC commissions
    • USDC earnings
  • Delegated tokens are never slashed

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Slashing Process

  1. Prerequisite: Pool Must Be Halted

    • Pool must already be halted
    • Minimum delay period must elapse (at least 1 day, configurable via slashing_delay_seconds)

  2. Invocation

    • Slashing authorities call slash_stake instruction
    • Specify amount of shares to slash
    • Settles any pending USDC earnings first

  3. Effects

    • Reduces operator’s shares and corresponding tokens
    • Confiscates all pending commissions and USDC
    • Transfers slashed assets to designated protocol accounts
    • Emits SlashStakeEvent with details

  4. Destination

    • Slashed tokens go to slashing_destination_token_account
    • Slashed USDC goes to slashing_destination_usdc_account

Slashing is irreversible. Authorities follow strict protocols and evidence requirements before invoking slashes.

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Violation Examples

Potential reasons for halting/slashing include:

  • Malicious job processing
  • Network attacks or spam
  • Protocol violations
  • Hardware misrepresentation

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Authorities and Controls

Security operations are managed by separate authority sets to distribute power:

  • Halt Authorities (halt_authorities): Can halt/unhalt pools
  • Slashing Authorities (slashing_authorities): Can execute slashes on halted pools
  • Program Admin: Can update authority lists and global settings

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Protections for Participants

The protocol includes several safeguards:

  1. Delegator Protection

    • Delegated tokens immune to slashing
    • Can always unstake from halted pools
    • Protected from operator misconduct

  2. Delay Periods

    • Minimum 1-day delay between halt and slash
    • Configurable via slashing_delay_seconds
    • Allows time for appeals/investigation

  3. Transparency

    • All halts and slashes emit events
    • On-chain timestamps track actions
    • Public authority keys

  4. Reversibility

    • Halts can be lifted
    • Global halts are temporary controls

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Best Practices for Operators

To avoid security actions:

  • Maintain honest job processing
  • Ensure high uptime and performance
  • Follow all protocol rules
  • Monitor your pool status
  • Respond promptly to any warnings
  • Keep your hardware secure

If your pool is halted:

  • Contact support immediately
  • Provide any requested evidence
  • Do not attempt restricted actions
  • Delegators can still withdraw

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FAQ

Q: Can delegators lose funds from slashing?
A: No. Only operator self-stake is at risk. Delegators are fully protected.

Q: How long after halting can slashing occur?
A: At least 1 day (86,400 seconds), configurable but never less than minimum.

Q: Who controls the authorities?
A: Authority keys are managed by Inference.net governance. Lists are public and on-chain.

Q: What happens to slashed funds?
A: Transferred to protocol-controlled accounts to fund network security initiatives.

Q: Can I unstake from a halted pool?
A: Delegators can unstake from a halted pool, but operators cannot.

Q: How are violations detected?
A: Through inference and network verification mechanisms.

For questions or concerns about network security, join our Discord community.