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

University of Connecticut

Frozen Capital Purposes

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

Loki Whitepaper

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

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