What are the risks associated with sequencer mining?
In case of bad performance or malicious acting, the particular sequencer pool participant’s locked tokens would be slashed.
In what cases a particular sequencer is considered malicious?
Cases would include but not limited to:
- Transaction manipulation (MEV or sandwiching)
- Malicious Execution Result Modification: If a node modifies the execution result of a block, it will fail validation by other sequencers. This will cause other sequencers to stop producing blocks. The node will then be forced to produce a new block with the correct execution result.
How is “bad performance” defined?
Cases would include but not limited to:
- Failing to produce a block during a certain period of time
- Slow performance: if the sequencer fails to produce the blocks vastly behind the average timing of other sequencers
- Multiple Node Outages: If multiple nodes go offline at the same time, and they are all malicious, they should be punished more severely. This includes nodes that represent more than 1/3 of the total number of sequencers
- Accumulated Unpacked Blocks:
If a node does not pack a block for a certain number of transactions, other sequencers can vote to slash it.