Add dispute-game economics: challenger bonds, slashing, and terminal … - #672
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Mimah97 merged 2 commits intoJul 30, 2026
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…arbitration/void Challenging a resolution candidate was free, letting an attacker stall resolution indefinitely by repeatedly disputing at zero cost. A losing challenger could also never lose their stake, and a candidate that exhausted its appeal rounds (or was simply abandoned mid-dispute) had no path out of `Challenged`, permanently locking user collateral. - `challenge` now requires a bond (>= MIN_CHALLENGE_BOND_AMOUNT), locked in the contract alongside the proposer's bond and recorded per-candidate across every appeal round. - `finalize` (and the new `arbitrate_uphold_proposer`) refund the proposer and slash every recorded challenger's bond, split reward/burn/treasury. - `void_market` (admin, timelocked via ARBITRATION_TIMELOCK_SECONDS since the last challenge deadline) slashes the proposer's bond instead, refunds challengers, and calls a new market-contract `void_market` entrypoint (gated to the registered resolution contract) to cancel the market so collateral becomes reclaimable rather than stuck. - New events for bond lock/slash/reward/void; unit tests cover the bond requirement, the documented split, an adversarial multi-round griefing scenario, and both terminal arbitration paths.
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closes #661
This PR completes the dispute-game incentive mechanism by introducing balanced bonding, fair reward distribution, and a clear terminal resolution process for unresolved disputes.
Changes
Added a challenger bond requirement for dispute initiation.
Implemented win/lose payout logic for proposers and challengers.
Added automatic/governed slashing of incorrect proposers.
Refunded or rewarded bonds based on the final dispute outcome.
Introduced a terminal dispute state after MAX_APPEAL_ROUNDS (3), allowing disputes to be resolved through arbitration or marked as void, preventing markets from remaining indefinitely unresolved.
Impact
These changes strengthen the protocol's dispute economics, discourage malicious proposals and frivolous challenges, and ensure every dispute reaches a deterministic on-chain conclusion.