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Step 3: Dispute & Slash Challenge

Dispute & Slash Challenge The DeSix decentralized protocol does not rely on any "single centralized house" to determine winning numbers; instead, it relies on node consensus and a public challenge game. In the public test, verifying "node collusion and self-healing punishment" is one of the core testing goals.


1. The 3/5 Consensus Mechanism for Drawings

After the betting period for an issue closes (locks), the system transitions to the Drawing phase:

  1. Five independently registered oracle nodes (each staking $\ge$ 5,000 USDC of LP assets) fetch the real-world draw outcome (the winning number from the Macau Mark Six official site).
  2. Each node submits its result on-chain (e.g., winning number 12).
  3. Once three nodes submit the same number, a 3/5 majority consensus is reached. The system transitions to Drawn, and the winning number enters the public challenge period.

2. What is the Challenge Period?

To prevent three out of five nodes from colluding or having their private keys compromised, which could lead to them submitting a false winning number (e.g., colluding on 8 when the official number is 12), the system enforces a mandatory Challenge Period:

  • Fast Track (30 Minutes): If all five nodes submit 100% identical results, showing no divergence, the challenge period is only 30 minutes.
  • Standard Track (24 Hours): If there is any inconsistency in node submissions, indicating a divergence, the system automatically extends the challenge period to 24 hours.
  • During this period, winners cannot claim payouts; the funds are locked in the payout reserve.

3. How to Raise a Dispute Challenge

If you, acting as an auditor (or an affected winning player), discover on the frontend lobby or block explorer that:

On-chain consensus winning number: 8 🏆 Official winning number: 12

You can raise a challenge immediately:

Step A: Prepare the Dispute Stake

To prevent spam disputes from freezing the prize pool, raising a dispute requires staking a Dynamic Dispute Bond: $$\text{Effective Dispute Stake} = \max(\text{minDisputeStake}, \text{Total Stake of Issue} \times 0.5%)$$ The minimum stake is 10.00 USDC on the testnet and 100.00 USDC on the mainnet. As the prize pool grows, the required challenge bond increases proportionally.

Step B: Call Raise Dispute

  1. Find the card for that issue in the lobby and click [Raise Dispute].
  2. Your smart wallet will send a transaction, depositing your dispute stake.
  3. State Frozen: The issue state immediately transitions to Disputed. All standard payout and claim methods are locked.

4. Arbitration & Oracle Liquidation (Slash)

Once in the disputed state, the smart contract arbitrates using one of three pathways:

  • Path A (Automated): The challenger submits a cryptographically signed data proof (e.g., TLSNotary proof), which the contract validates via ecrecover to instantly render a verdict.
  • Path B (Multisig): An emergency multisig governance committee intervenes to verify the correct numbers.
  • Path C (Economic Game): Both parties double down on their stakes, and the true data ultimately wins out due to global arbitrage incentives.

The Penalty for Bad Nodes (Slash)

If the node submissions are ruled false (collusion fails), the contract automatically executes the following penalties:

  1. Slash Stakes: Confiscate the registered stakes of the 3 colluding nodes ($3 \times 5,000\text{ USDC} = \mathbf{15,000.00\text{ USDC}}$).
  2. Refund Bond: Return your dispute stake (e.g., 10.00 USDC) in full.
  3. Auditor Reward: Send 20% of the confiscated stakes (i.e., 3,000.00 USDC) directly to your wallet! The remaining 80% is routed to the treasury and the LP liquidity pool.
  4. Blacklist Deregistration: The colluding nodes are removed, blacklisted, and their Core mining hashrates are cut to zero.
  5. System Recovery: The winning number is corrected to the real 12, and standard settlement/claims are reopened.

Through this economic game design, DeSix ensures that any nodes attempting to manipulate drawings face catastrophic financial losses, while honest "challengers" are handsomely rewarded.

Next: Liquidity Market-Making & LP Mining ➡️

Running on Base Sepolia Testnet. Decentralized, transparent, and verifiable.