Regen Network Slashing Event
A slashing event occurred on May 7th at 3:33 AM UTC which consequently tombstoned the FreshREGEN validator
A slashing event occurred on May 7 at 3:33 AM UTC which consequently tombstoned the FreshREGEN validator. This means that the validator was put into a state where it could no longer be in the active set and propose blocks. Unfortunately, a slashing event affects not only the validator but the users who have delegated to it as well.
Slashing can occur for two reasons:
- Validator downtime
- Double-signing a block
This slashing event was triggered by FreshREGEN double-signing, an action which means the validator signed a block with the same key twice. It is very important to understand that this slashing event is an example of the protocol working perfectly!
Double signing is a threat to the utility and value of the network. Regen Ledger is a public blockchain for ecological accounting, as such, it must accurately track the state of the $REGEN staking token, credit balances, the metadata associated with these credits, not to mention the state representing governance parameters. The thesis of a public network approach is to have governance over protocols or algorithmic management to guarantee data integrity and availability. Double signing is an interference with the statefulness that the network requires to track and produce public goods.
The FreshREGEN validator team has supported Regen Network for the past few years, being nothing but professional in their approach to our community. He is a professional validator and runs a tight ship, yet mistakes can happen.
Whether an honest mistake or purposeful act, the Tendermint consensus mechanism cannot know your intention. However, we as humans can tell that this was not a malicious act. According to the evidence, it is clear that this was a mistake and not a pattern of malicious behavior. We recommend all validators analyze for themselves what happened and learn from this mistake.
We also recommend that delegators delve a layer deeper to understand the Proof-of-Stake mechanism. Proof-of-Stake means our $REGEN tokens are at stake while securing the network and it is of utmost importance that we understand this mechanism. With the ability to earn block rewards, fees and participate in governance, comes the risks associated with putting your tokens at stake. This is the basic social contract that produces the p2p network security to ensure data integrity for the world’s ecological data and markets.
In good faith, RND Inc. will work to support FreshREGEN Validator. We will not let this mistake be the end of FreshREGEN’s ability to contribute as a validator and to the mission of Regen Network.
How This Affects Delegators
Delegators to FreshREGEN have experienced some loss in tokens. This 5% slashing penalty as described on FreshREGEN’s website has been deducted from delegators’ wallet and no longer exists on-chain. RND Inc and FreshREGEN are discussing options to reimburse delegators. At this time, we recommend all FreshREGEN delegators redelegate if you have not already done so by visiting the Keplr dashboard.
Once you are connected to the dashboard, find FreshREGEN in the list of validators you delegate to and click manage. Once the popup appears click the dropdown next to undelegate and choose redelegate. You can then choose the new validator to delegate to. Enter the amount to redelegate (in this case 100%) and click redelegate when finished.
Once in contact with our admins on Discord, Eddie from FreshREGEN took the time to outline the details of what occurred during the slashing event and the reason for this mistake. Below are some excerpts from this write-up, please take a moment to read them and visit freshregen.net for a more detailed explanation.
At 3:33AM UTC on May 7th, the FreshREGEN validator was removed from the active validator set on the Regen Network for double signing a block. A double sign penalty, also known as tombstoning a validator, is irreversible and carries a 5% penalty on the amount staked by the validator and all its delegators.
The cause of the double sign was a sentry being brought online with the active validator signing key…
…in the early AM hours of May 7th, we decommissioned one of our 3 sentries and used a file copy tool called rsync to move over the files from the decommissioned sentry to the machine we used at network launch (the 1st validator), which was to be used as the 3rd sentry….when this sentry was brought online it quickly caught up to the tip of the chain and caused the double sign event at block 300,786.
We take full responsibility for this incident, and it is with great regret that we communicate this event to Regen Network stakeholders…
…we have decided to disburse all of our Regen holdings (approximately 8000regen) to make (as much as possible for us) whole all of the community members who have delegated to us. As soon as funds are transferable, we will
disburse the funds proportionally to our delegator’s stake at the time of the jailing event.
This incident highlights an important risk that exists in the staking economy, and how crucial it is to prevent double signing…when we need to failover the active validator…we might miss one or two blocks, sometimes no blocks, but the integrity of the signing process is preserved. To ensure that this is the first and last time this event will happen, our Standard Operating Procedures will be updated…
On behalf of the FreshREGEN team, please accept our apologies for our mistakes. We look forward to seeing Regen Network achieve its goals, and we hope to continue to be a part of this amazing project.
Although a mistake was made, this event proves that the integrity of the network is preserved and that the Tendermint protocol is working to keep our network secure! Thank you to everyone reading this update. We appreciate your help in keeping our network and community strong.