Service Level Agreement (SLA)
Service Level Agreements (SLAs) are critical contracts within the Smart Layer network that define the operational standards and expectations for service nodes. These agreements establish clear service level objectives (SLOs) that each node commits to uphold, such as availability, performance, bandwidth, and latency standards.
Performance-Based Reward Mechanism
The Smart Layer network operates on a performance-based reward system. This means that nodes are incentivized to achieve and maintain high standards of service. Nodes that consistently meet or exceed their SLOs, as outlined in their SLAs, are rewarded. This system encourages a culture of excellence and reliability among service nodes, enhancing the overall performance of the network.
Staking in the Smart Layer Network
In the context of the Smart Layer network, staking involves a service node committing a certain amount of tokens as a guarantee of their performance. This is a fundamental aspect of the network's operation, serving as a bond or security deposit to ensure that nodes adhere to the standards set out in their SLAs.
The purpose of staking is to provide a tangible commitment from the service nodes to the network. It ensures that nodes have a vested interest in maintaining the high standards required by their SLAs. Staking is not just about earning rewards; it's a crucial part of the network's integrity and trustworthiness.
Stake Slashing – Ensuring Accountability
Stake slashing is a mechanism used to enforce the terms of the SLA. If a service node fails to meet the agreed-upon SLOs, a portion of their staked tokens may be forfeited or "slashed." This penalty is not arbitrary but is triggered by specific conditions outlined in the SLA. The conditions under which stake slashing occurs are clearly defined and agreed upon when the service node joins the network. This might include scenarios like prolonged downtime, slow response times, or other breaches of the agreed performance metrics.
Negotiation and Testing
To ensure feasibility and fairness, service nodes negotiate their SLAs with Anchoring Nodes. This process includes a serviceability test to assess the node's capability to fulfill the SLA. This proactive step helps to prevent situations where a node might underperform and face penalties.
Anchoring Nodes play a critical role in the network. They monitor the performance of service nodes, ensuring adherence to SLAs, and manage the reward and penalty system. This includes distributing rewards to high-performing nodes and implementing stake slashing for those that fail to meet their obligations.