Penalty Enforcement

Penalties are the backbone of Axiom’s security system.

• Incorrect proposers lose 0.20 percent of their stake

• Incorrect voters lose 0.10 percent

• Idle voters may lose a small amount if governance enables that parameter later

• Penalty amounts are burned from their share balance

• Rewards are minted to correct participants

An attacker trying to manipulate a market would need to:

• Stake a massive amount

• Risk losing a portion of that stake

• Outperform the honest majority

This makes attacks economically irrational.