Dispute Mediation

MarDAO participants ("kolaborators") receive $KOLAB for voting on the resolution of customer disputes. All aspects of the customer dispute process can be changed through a successful proposal to the DAO.

KOLab employs a slashing mechanism to discourage large stakers from refunding transactions they initiated by dominating the mediation vote.

Let's denote:

• S: Staked tokens of a user

• P: Slashing percentage

• M: Misbehavior score

• C: Cooldown period in epochs (a specific time period)

• R: Reputation damage (a reduction in reputation points)

Slashing Penalty:

Slashing Penalty = S * P * M

Cooldown Period:

Cooldown Period = C * M

Reputation Damage:

Reputation Damage = R * M

Misbehavior Score Calculation:

This can be a complex function based on various factors. A simplified approach could be:

M = w1 * FD + w2 * CO + w3 * SA + w4 * BR

Where:

• FD: Number of false disputes

• CO: Collusion score (based on the complexity and impact of the collusion)

• SA: Number of Sybil accounts detected

• BR: Bribery score (based on the amount of bribes offered or accepted)

• w1, w2, w3, w4: Weights assigned to each factor, determined by the DAO's governance.

Implementing the Slashing Mechanism

1. Misbehavior Detection:

   • Use a combination of on-chain and off-chain techniques, including:

     • Smart contract analysis

     • Social graph analysis

     • Machine learning algorithms

2. Evidence Gathering:

   • Collect evidence of misbehavior, such as transaction logs, social media posts, and witness testimonies.

3. Community Voting:

   • Allow the DAO community to vote on the severity of the offense and the appropriate punishment.

4. Slashing Execution:

   • Once a user is found guilty, their staked tokens are slashed, and they are subjected to a cooldown period and reputation damage.

The parameters of the slashing mechanism can be adjusted over time to adapt to changing circumstances through successful MarDAO proposals.