Arbitration
After a dispute is successfully initiated and no settlement has been reached during the SLA period, the dispute goes to arbitration. Note that initially Story will have a team of IP experts and external counsel, and randomly choose an odd number of arbiters (likely 3 or 5) to collectively reach a majority decision. During arbitration, the stake is frozen and IP Asset incentives stop distributing. Existing stakers cannot withdraw $verioIP and new addresses cannot stake on the IP Asset in question. After arbitration, if the decision is negative, then dispute fails; if the decision is positive, then the dispute succeeds.
Dispute Failed after Arbitration
If the arbitration decision is negative, then the dispute has failed.
The disputer's (User A) bond deposit to initiate the dispute is now confiscated.
The IP Asset's incentives are unfrozen and restart rewards distribution to stakers. Existing stakers do not lose any of their $verioIP stake.
New stakers can now participate in staking on this IP Asset and earn yield accordingly.
Dispute Success
If the arbitration decision is positive, then the dispute is successful.
The disputer's (User A) bond deposit to initiate the dispute is now returned.
The violating IP Asset's remaining incentives provided by the creator is returned to the creator.
The IP is invalidated. Consequently, any existing licenses minted against this IP Asset is invalidated and no new licenses can be minted against this IP Asset. Royalty flow also stops immediately.
A portion of the stake is slashed and the rest returned to the original stakers.
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