Slashing
Users' stake on an IP Asset will only get slashed if 1 -3 conditions below are all not met during dispute.
A user attempts to dispute an IP Asset but the disputer fails to deposit bond meeting the min-dispute-fee threshold.
A bond is deposited meeting the dispute-threshold and a dispute is successfully initiated. During the 14-day SLA period, a settlement is successfully reached between the disputer and defender.
Past the 14-day SLA period, no settlement is reached and decision is passed on to Story's Arbitration. After a deliberation process, Story's decision is negative, deciding that the IP Asset in question does not pose an infringement on another IP Asset. Dispute fails.
Finally, if the final decision by Story is positive and deemed the IP Asset in question to be infringing on another existing IP, a portion of stakers' $verioIP staking on the violating IP Asset gets slashed.
The slashed $verioIP gets redistributed in the 5 ways below
A portion of $verioIP gets rewarded to the disputer (on top of the bond refund). This reward structure incentivizes experts to dispute on IP Assets in potential violation of other IPs, thereby protecting creators' IP rights on Story.
A portion of $verioIP gets compensated to the original IP creator whose IP has been infringed on.
A portion of $verioIP gets redirected to Verio's incentives pool for incentivizations on existing and future registered IP Assets.
A small portion of $veiroIP gets burned (with a hard max cap), creating deflationary pressure for Story's IP token.
Finally, the remaining (unslashed) $verioIP gets returned to the IP Asset stakers.
Such staking incentives and slashing behaviors encourage stakers to evaluate IP Assets, only endorse IP Assets that they deem to be valid, and bear the repercussion of potentially losing their stake from IP Assets violations. Of course, users (most likely will) can choose to delegate their $verioIP stake to IPVSs of their choice after weighing their risk & rewards appetite.
Overall, Verio's restaking structure accelerates IP mass adoption and creates a positive flywheel for this trillion-dollar asset class, pioneering a completely new crypto paradigm alongside Story - IP Paradigm.
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