Every Service Node operator has a sufficiently large stake in the success of the network. If any operator provides poor performance, they undermine and risk devaluing their own stake within the network

Frozen Capital Stake

Provides the opportunity for more aggressive enforcement, as when the network is able to effectively limit dishonest nodes from receiving a reward, the dishonest nodes must bear the opportunity cost of both the reward loss and the reaming lockup time on their collateral

Frozen Capital Enforcement

University of Connecticut

Each Service Node operator freezes Loki coins when they begin to operate a Service Node. This serves two purposes, which is used to enforce aggressive punishment for poorly behaving nodes. This forces groups of service nodes to come to a consensus on the status of the blockchain.

LokiNet Services

https://loki.network/wp-content/uploads/2018/10/LokiWhitepaperV3_1.pdf

Loki Whitepaper

Frozen Capital Purposes

- Loki Messenger
- SNApps
- Exit Nodes
- Remote Nodes
- Blink

Learn Before

Related

Learn After