Down time Penalization

Do validators face penalties for downtime?

Yes, at PAW Chain, we monitor validator offline time closely to optimize network efficiency. Validators incur penalties based on the duration of their downtime. When a validator goes offline, they are fined 1 billion PAW per hour of downtime. If a validator misses two penalty checkpoints (24 hours), they will face a temporary ban and a fine of 10 billion PAW for each ban. Upon accumulating 10 consecutive bans, a validator incurs a 250 billion PAW fine and a suspension from reapplying to another validator position for 30 days. After this suspension period, they must reapply for a validator position through the validator dashboard and undergo approval again.

Does validator penalties affect delegators' stakes?

No, delegators are not penalized if their validator goes offline. However, if their validator is banned, delegators incur a 0.25% fine from the pool.