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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 ➡️

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