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Version: v4 (next)

Network Governance Authority Slashing

In some very rare cases, slashing the trust deposit of a given Permission can be limited and may not provide a sufficient sanction, if committed fraud is considered very high.

Slash Trust Deposit​

This method can only be called by a governance proposal. A globally slashed account MUST repay the slashed deposit in order to continue to use the services provided by the VPR. When an account is slashed, and while slashed deposit has not been repaid, all account linked permissions MUST be considered non trustable.

This method is for network governance authority slash. For ecosystem slash, see Slash a Permission.

Environment Setup​

Set the following environment variables before running the CLI commands:

AUTHORITY_ACC="verana1groupaccountaddress..."   # Group account (authority)
OPERATOR_ACC="my-operator-key"                  # Operator key name in keyring
SLASHED_ACCOUNT="verana1example0123456789abcdefghijklmnopqrstuv"
CHAIN_ID="vna-testnet-1"
NODE_RPC="https://rpc.testnet.verana.network"

Step 1: Prepare the Governance Proposal​

Create a JSON file for the SlashTrustDepositProposal. This proposal will slash the trust deposit of a specified account.

Example slash_proposal.json:

jq -n --arg acc "$SLASHED_ACCOUNT" \
'{
  messages: [
    {
      "@type": "/verana.td.v1.MsgSlashTrustDeposit",
      authority: "verana10d07y265gmmuvt4z0w9aw880jnsr700j22m4w8",
      account: $acc,
      amount: "1000000"
    }
  ],
  metadata: "ipfs://CID",
  deposit: "10000000uvna",
  title: "Slash Trust Deposit for Fraudulent Activity",
  summary: ("This proposal requests to slash 1,000,000 uvna from the trust deposit of account " + $acc + " due to verified fraudulent activity. The account will need to repay this slashed amount before being able to participate in the VPR again."),
  expedited: false
}' > slash_proposal.json

Parameters:

  • authority: The governance module address (check with veranad q auth module-accounts --node $NODE_RPC)
  • account: The account address to be slashed
  • amount: Amount to slash in uvna
  • deposit: Initial deposit for the proposal (minimum 10000000uvna)
  • title: Clear title describing the proposal
  • summary: Detailed explanation of the slashing reason

Step 2: Submit the Governance Proposal​

veranad tx gov submit-proposal slash_proposal.json \
  --from $OPERATOR_ACC \
  --keyring-backend test \
  --chain-id $CHAIN_ID \
  --fees 750000uvna \
  --gas auto \
  --node $NODE_RPC

Step 3: Query the Proposal​

After submission, check the proposal status:

veranad q gov proposals --node $NODE_RPC

Note the proposal ID from the output.

Step 4: Vote on the Proposal​

Validators and delegators can vote on the proposal. The voting period is typically 10 minutes on testnet.

Vote Options:

  • yes - In favor of slashing
  • no - Against slashing
  • no_with_veto - Against and considers proposal malicious
  • abstain - Neutral stance

Cast Your Vote:

PROPOSAL_ID=1  # Replace with actual proposal ID
veranad tx gov vote $PROPOSAL_ID yes \
  --from $VALIDATOR_ACC \
  --keyring-backend test \
  --chain-id $CHAIN_ID \
  --fees 650000uvna \
  --gas auto \
  --node $NODE_RPC

Step 5: Monitor Proposal Status​

Track the voting progress and tally:

# Check vote tally
veranad q gov tally $PROPOSAL_ID \
  --output json \
  --node $NODE_RPC

# Check detailed proposal status
veranad q gov proposal $PROPOSAL_ID \
  --output json \
  --node $NODE_RPC

Step 6: Proposal Execution​

If the proposal passes (reaches quorum and majority approval), it will be automatically executed at the end of the voting period. The trust deposit will be slashed from the specified account.

Verify the slash:

veranad q td get-trust-deposit $SLASHED_ACCOUNT \
  --node $NODE_RPC \
  --output json

The output will show:

  • slashed_deposit: The amount that was slashed
  • slash_count: Incremented by 1
  • last_slashed: Updated with the slash timestamp

Repay Slashed Trust Deposit​

Repay a governance-slashed trust deposit to restore compliance.

This is a non-delegable message — the signer (--from) is the account paying for the repayment. Anyone can repay on behalf of a slashed account.

A slashed account cannot participate in the VPR until the slashed deposit is fully repaid. All permissions linked to the slashed account are considered non-trustable until repayment is complete.

Exact Amount Required

The repayment amount must exactly match the outstanding slashed amount (slashed_deposit - repaid_deposit). Partial repayments are not allowed.

Usage​

veranad tx td repay-slashed-td [account] [amount] \
  --from <user-account> \
  --chain-id <chain-id> \
  --keyring-backend test \
  --fees <amount> \
  --gas auto \
  --node <rpc-endpoint>

Message Parameters​

NameDescriptionMandatory
accountThe account whose slashed deposit will be repaidyes
amountRepayment amount in uvna (must exactly match outstanding slash)yes
--fromAccount signing and paying for the repaymentyes

Example​

# First, check the outstanding slashed amount
veranad q td get-trust-deposit $SLASHED_ACCOUNT \
  --node $NODE_RPC \
  --output json

# Repay the slashed amount (must be exact)
SLASHED_AMOUNT=1000000  # Replace with actual outstanding slashed amount
veranad tx td repay-slashed-td $SLASHED_ACCOUNT $SLASHED_AMOUNT \
  --from $USER_ACC \
  --chain-id $CHAIN_ID \
  --keyring-backend test \
  --fees 600000uvna \
  --gas auto \
  --node $NODE_RPC

Prerequisites:

  • The authority must have an existing trust deposit with outstanding slashed amount
  • The operator must have a valid OperatorAuthorization for /verana.td.v1.MsgRepaySlashedTrustDeposit
  • Repayment amount must exactly equal slashed_deposit - repaid_deposit
  • Sufficient account balance to cover the repayment

What Happens:

  1. System verifies operator authorization (AUTHZ-CHECK)
  2. Validates that the amount exactly matches the outstanding slash
  3. Increases amount (deposit) by the repayment amount
  4. Increases share proportionally based on current share value
  5. Increases repaid_deposit by the repayment amount
  6. Updates last_repaid timestamp
  7. Transfers the repayment amount from the authority account to the TD module

Verify Repayment​

After repayment, verify the trust deposit status:

veranad q td get-trust-deposit $AUTHORITY_ACC \
  --node $NODE_RPC \
  --output json

Expected changes:

  • amount: Increased by the repaid amount
  • repaid_deposit: Increased by the repaid amount
  • last_repaid: Updated with repayment timestamp

Once repaid_deposit equals slashed_deposit, all account permissions become trustable again and the account can fully participate in the VPR.

See also​