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<ol class="chapter"><li class="chapter-item expanded affix "><a href="../introduction.html">Introduction</a></li><li class="spacer"></li><li class="chapter-item expanded affix "><li class="part-title">Newly Proposed</li><li class="spacer"></li><li class="chapter-item expanded affix "><li class="part-title">Proposed</li><li class="chapter-item expanded "><a href="../proposed/0015-market-design-revisit.html">RFC-0015: Market Design Revisit</a></li><li class="chapter-item expanded "><a href="../proposed/0026-sassafras-consensus.html">RFC-0026: Sassafras Consensus Protocol</a></li><li class="chapter-item expanded "><a href="../proposed/0089-flexible-inflation.html">RFC-0089: Flexible Inflation</a></li><li class="chapter-item expanded "><a href="../proposed/0091-dht-record-creation-time.html">RFC-0091: DHT Authority discovery record creation time</a></li><li class="spacer"></li><li class="chapter-item expanded affix "><li class="part-title">Approved</li><li class="chapter-item expanded "><a href="../approved/0001-agile-coretime.html">RFC-1: Agile Coretime</a></li><li class="chapter-item expanded "><a href="../approved/0005-coretime-interface.html">RFC-5: Coretime Interface</a></li><li class="chapter-item expanded "><a href="../approved/0007-system-collator-selection.html">RFC-0007: System Collator Selection</a></li><li class="chapter-item expanded "><a href="../approved/0008-parachain-bootnodes-dht.html">RFC-0008: Store parachain bootnodes in relay chain DHT</a></li><li class="chapter-item expanded "><a href="../approved/0010-burn-coretime-revenue.html">RFC-0010: Burn Coretime Revenue</a></li><li class="chapter-item expanded "><a href="../approved/0012-process-for-adding-new-collectives.html">RFC-0012: Process for Adding New System Collectives</a></li><li class="chapter-item expanded "><a href="../approved/0013-prepare-blockbuilder-and-core-runtime-apis-for-mbms.html">RFC-0013: Prepare Core runtime API for MBMs</a></li><li class="chapter-item expanded "><a href="../approved/0014-improve-locking-mechanism-for-parachains.html">RFC-0014: Improve locking mechanism for parachains</a></li><li class="chapter-item expanded "><a href="../approved/0022-adopt-encointer-runtime.html">RFC-0022: Adopt Encointer Runtime</a></li><li class="chapter-item expanded "><a href="../approved/0032-minimal-relay.html">RFC-0032: Minimal Relay</a></li><li class="chapter-item expanded "><a href="../approved/0042-extrinsics-state-version.html">RFC-0042: Add System version that replaces StateVersion on RuntimeVersion</a></li><li class="chapter-item expanded "><a href="../approved/0043-storage-proof-size-hostfunction.html">RFC-0043: Introduce storage_proof_size Host Function for Improved Parachain Block Utilization</a></li><li class="chapter-item expanded "><a href="../approved/0045-nft-deposits-asset-hub.html">RFC-0045: Lowering NFT Deposits on Asset Hub</a></li><li class="chapter-item expanded "><a href="../approved/0047-assignment-of-availability-chunks.html">RFC-0047: Assignment of availability chunks to validators</a></li><li class="chapter-item expanded "><a href="../approved/0048-session-keys-runtime-api.html">RFC-0048: Generate ownership proof for SessionKeys</a></li><li class="chapter-item expanded "><a href="../approved/0050-fellowship-salaries.html">RFC-0050: Fellowship Salaries</a></li><li class="chapter-item expanded "><a href="../approved/0056-one-transaction-per-notification.html">RFC-0056: Enforce only one transaction per notification</a></li><li class="chapter-item expanded "><a href="../approved/0059-nodes-capabilities-discovery.html">RFC-0059: Add a discovery mechanism for nodes based on their capabilities</a></li><li class="chapter-item expanded "><a href="../approved/0078-merkleized-metadata.html">RFC-0078: Merkleized Metadata</a></li><li class="chapter-item expanded "><a href="../approved/0084-general-transaction-extrinsic-format.html">RFC-0084: General transactions in extrinsic format</a></li><li class="spacer"></li><li class="chapter-item expanded affix "><li class="part-title">Stale</li><li class="chapter-item expanded "><a href="../stale/0004-remove-unnecessary-allocator-usage.html">RFC-0004: Remove the host-side runtime memory allocator</a></li><li class="chapter-item expanded "><a href="../stale/0006-dynamic-pricing-for-bulk-coretime-sales.html">RFC-0006: Dynamic Pricing for Bulk Coretime Sales</a></li><li class="chapter-item expanded "><a href="../stale/0009-improved-net-light-client-requests.html">RFC-0009: Improved light client requests networking protocol</a></li><li class="chapter-item expanded "><a href="../stale/0020-treasurer-track-confirmation-period-duration-modification.html">RFC-0020: Treasurer Track Confirmation Period Duration Modification</a></li><li class="chapter-item expanded "><a href="../stale/0034-xcm-absolute-location-account-derivation.html">RFC-34: XCM Absolute Location Account Derivation</a></li><li class="chapter-item expanded "><a href="../stale/0035-conviction-voting-delegation-modifications.html"> RFC-0035: Conviction Voting Delegation Modifications</a></li><li class="chapter-item expanded "><a href="../stale/0044-rent-based-registration.html">RFC-0044: Rent based registration model</a></li><li class="chapter-item expanded "><a href="../stale/0054-remove-heap-pages.html">RFC-0054: Remove the concept of "heap pages" from the client</a></li><li class="chapter-item expanded "><a href="../stale/0070-x-track-kusamanetwork.html">RFC-0070: X Track for @kusamanetwork</a></li><li class="chapter-item expanded "><a href="../stale/0073-referedum-deposit-track.html">RFC-0073: Decision Deposit Referendum Track</a></li><li class="chapter-item expanded "><a href="../stale/0074-stateful-multisig-pallet.html">RFC-0074: Stateful Multisig Pallet</a></li><li class="chapter-item expanded "><a href="../stale/0077-increase-max-length-of-identity-pgp-fingerprint-value.html">RFC-0077: Increase maximum length of identity PGP fingerprint values from 20 bytes</a></li><li class="chapter-item expanded "><a href="../stale/0088-broker-pallet-slashable-deposit-purchaser-reputation-reserved-cores.html" class="active">RFC-0088: Add slashable locked deposit, purchaser reputation, and reserved cores for on-chain identities to broker pallet</a></li></ol>
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<h1 class="menu-title">Polkadot Fellowship RFCs</h1>
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<p><a href="https://github.com/polkadot-fellows/RFCs/pull/88">(source)</a></p>
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<p><strong>Table of Contents</strong></p>
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<ul>
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<li><a href="#rfc-0088-add-slashable-locked-deposit-purchaser-reputation-and-reserved-cores-for-on-chain-identities-to-broker-pallet">RFC-0088: Add slashable locked deposit, purchaser reputation, and reserved cores for on-chain identities to broker pallet</a>
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<ul>
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<li><a href="#summary">Summary</a></li>
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<li><a href="#motivation">Motivation</a>
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<ul>
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<li><a href="#background">Background</a></li>
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<li><a href="#problem">Problem</a></li>
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<li><a href="#solution-requirements">Solution Requirements</a></li>
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</ul>
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</li>
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<li><a href="#stakeholders">Stakeholders</a></li>
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<li><a href="#drawbacks">Drawbacks</a>
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<ul>
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<li><a href="#performance">Performance</a></li>
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</ul>
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</li>
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<li><a href="#testing-security-and-privacy">Testing, Security, and Privacy</a></li>
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<li><a href="#performance-ergonomics-and-compatibility">Performance, Ergonomics, and Compatibility</a>
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<ul>
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<li><a href="#performance-1">Performance</a></li>
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<li><a href="#ergonomics">Ergonomics</a></li>
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<li><a href="#compatibility">Compatibility</a></li>
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<li><a href="#prior-art-and-references">Prior Art and References</a>
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<li><a href="#prior-art">Prior Art</a></li>
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<li><a href="#unresolved-questions">Unresolved Questions</a></li>
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<li><a href="#future-directions-and-related-material">Future Directions and Related Material</a></li>
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</ul>
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</li>
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</ul>
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<h1 id="rfc-0088-add-slashable-locked-deposit-purchaser-reputation-and-reserved-cores-for-on-chain-identities-to-broker-pallet"><a class="header" href="#rfc-0088-add-slashable-locked-deposit-purchaser-reputation-and-reserved-cores-for-on-chain-identities-to-broker-pallet">RFC-0088: Add slashable locked deposit, purchaser reputation, and reserved cores for on-chain identities to broker pallet</a></h1>
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<div class="table-wrapper"><table><thead><tr><th></th><th></th></tr></thead><tbody>
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<tr><td><strong>Start Date</strong></td><td>25 Apr 2024</td></tr>
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<tr><td><strong>Description</strong></td><td>Add slashable locked deposit, purchaser reputation, and reserved cores for on-chain identities to broker pallet</td></tr>
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<tr><td><strong>Authors</strong></td><td>Luke Schoen</td></tr>
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</tbody></table>
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</div>
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<h2 id="summary"><a class="header" href="#summary">Summary</a></h2>
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<p>This proposes to require a slashable deposit in the <a href="https://github.com/paritytech/polkadot-sdk/tree/master/substrate/frame/broker">broker pallet</a> when initially purchasing or renewing Bulk Coretime or Instantaneous Coretime cores.</p>
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<p>Additionally, it proposes to record a reputational status based on the behavior of the purchaser, as it relates to their use of Kusama Coretime cores that they purchase, and to possibly reserve a proportion of the cores for prospective purchasers that have an on-chain identity.</p>
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<h2 id="motivation"><a class="header" href="#motivation">Motivation</a></h2>
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<h3 id="background"><a class="header" href="#background">Background</a></h3>
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<p>There are sales of Kusama Coretime cores that are scheduled to occur later this month by Coretime Marketplace <a href="https://www.lastic.xyz/kusama/bulkcore1">Lastic.xyz</a> initially in limited quantities, and potentially also by <a href="https://regionx.tech/">RegionX</a> in future that is subject to their <a href="https://polkadot.polkassembly.io/referenda/582">Polkadot referendum #582</a>. This poses a risk in that some Kusama Coretime core purchasers may buy Kusama Coretime cores when they have no intention of actually placing a workload on them or leasing them out, which would prevent those that wish to purchase and actually use Kusama Coretime cores from being able to use any at cores at all.</p>
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<h3 id="problem"><a class="header" href="#problem">Problem</a></h3>
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<p>The types of purchasers may include:</p>
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<ul>
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<li>Collectors (e.g. purchase a significant core such as the first core that is sold just to increase their likelihood of receiving an NFT airdrop for being one of the first purchasers).</li>
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<li>Resellers (e.g. purchase a core that may be used at a popular period of time to resell closer to the date to realise a profit)</li>
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<li>Market makers (e.g. buy cores just to change the floor price or volume).</li>
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<li>Anti-competitive (e.g. competitor to Polkadot ecosystem purchases cores possibly in violation of anti-trust laws just to restrict access to prospective Kusama Coretime sales cores by the Kusama community that wish to do business in the Polkadot ecosystem).</li>
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</ul>
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<p>Chaoatic repurcussions could include the following:</p>
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<ul>
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<li>Generation of "white elephant" Kusama Coretime cores, similar to "white elephant" properties in the real-estate industry that never actually get used, leased or tenanted.</li>
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<li>Kusama Coretime core resellers scalping the core time faster than the average core time consumer, and then choosing to use dynamic pricing that causes prices to fluctuate based on demand.</li>
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<li>Resellers that own the Kusama Coretime scalping organisations may actually turn out to be the Official Kusama Coretime sellers.</li>
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<li>Official Kusama Coretime sellers may establish a monopoly on the market and abuse that power by charging exhorbitant additional charge fees for each purchase, since they could then increase their floor prices even more, pretending that there are fewer cores available and more demand to make extra profits from their scalping organisations, similar to how it occurred in these <a href="https://www.rollingstone.com/pro/news/ticketmaster-cheating-scalpers-726353/">concert ticket sales</a>. This could caused Kusama Coretime costs to be no longer be affordable to the Kusama community.</li>
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<li>Official Kusama Coretime sellers may run pre-sale events, but their websites may not be able to unable to handle the traffic and crash multiple times, causing them to end up cancelling those pre-sales and the pre-sale registrants missing out on getting a core that way, which would then cause available Kusama Coretime cores to be bought and resold at a higher price on third-party sites.</li>
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<li>The scalping activity may be illegal in some jurisdictions and raise anti-trust issues similar to the Taylor Swift debacle over concert tickets.</li>
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</ul>
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<h3 id="solution-requirements"><a class="header" href="#solution-requirements">Solution Requirements</a></h3>
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<ol>
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<li>
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<p><strong>On-chain identity</strong>. It may be possible to circumvent bots and scalpers to an extent by requiring a proportion of Kusama Coretime purchasers to have an on-chain identity. As such, a possible solution could be to allow the configuration of a threshold in the Broker pallet that reserves a proportion of the cores for accounts that have an on-chain identity, that reverts to a waiting list of anonymous account purchasers if the reserved proportion of cores remain unsold.</p>
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</li>
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<li>
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<p><strong>Slashable deposit</strong>. A viable solution could be to require a slashable deposit to be locked prior to the purchase or renewal of a core, similar to how decision deposits are used in OpenGov to prevent spam, but where if you buy a Kusama Coretime core you could be challenged by one of more collectives of fishermen to provide proof against certain criteria of how you used it, and if you fail to provide adequate evidence in response to that scrutiny, then you would lose a proportion of that deposit and face restrictions on purchasing or renewing cores in future that may also be configured on-chain.</p>
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</li>
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<li>
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<p><strong>Reputation</strong>. To disincentivise certain behaviours, a reputational status indicator could be used to record the historic behavior of the purchaser and whether on-chain judgement has determined they have adequately rectified that behaviour, as it relates to their usage of Kusama Coretime cores that they purchase.</p>
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</li>
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</ol>
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<h2 id="stakeholders"><a class="header" href="#stakeholders">Stakeholders</a></h2>
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<ul>
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<li>Any Kusama account holder wishing to use the Broker pallet in any upcoming Kusama Coretime sales.</li>
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<li>Any prospective Kusama Coretime purchaser, developer, and user.</li>
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<li>KSM holders.</li>
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</ul>
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<h2 id="drawbacks"><a class="header" href="#drawbacks">Drawbacks</a></h2>
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<h3 id="performance"><a class="header" href="#performance">Performance</a></h3>
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<p>The slashable deposit if set too high, may result in an economic impact, where less Kusama Coretime core sales are purchased.</p>
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<h2 id="testing-security-and-privacy"><a class="header" href="#testing-security-and-privacy">Testing, Security, and Privacy</a></h2>
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<p>Lack of a slashable deposit in the Broker pallet is a security concern, since it exposes Kusama Coretime sales to potential abuse.</p>
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<p>Reserving a proportion of Kusama Coretime sales cores for those with on-chain identities should not be to the exclusion of accounts that wish to remain anonymous or cause cores to be wasted unnecessarily. As such, if cores that are reserved for on-chain identities remain unsold then they should be released to anonymous accounts that are on a waiting list.</p>
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<p>No implementation pitfalls have been identified.</p>
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<h2 id="performance-ergonomics-and-compatibility"><a class="header" href="#performance-ergonomics-and-compatibility">Performance, Ergonomics, and Compatibility</a></h2>
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<h3 id="performance-1"><a class="header" href="#performance-1">Performance</a></h3>
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<p>It should improve performance as it reduces the potential for state bloat since there is less risk of undesirable Kusama Coretime sales activity that would be apparent with no requirement for a slashable deposit or there being no reputational risk to purchasers that waste or misuse Kusama Coretime cores.</p>
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<p>The solution proposes to minimize the risk of some Kusama Coretime cores not even being used or leased to perform any tasks at all.</p>
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<p>It will be important to monitor and manage the slashable deposits, purchaser reputations, and utilization of the proportion of cores that are reserved for accounts with an on-chain identity.</p>
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<h3 id="ergonomics"><a class="header" href="#ergonomics">Ergonomics</a></h3>
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<p>The mechanism for setting a slashable deposit amount, should avoid undue complexity for users.</p>
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<h3 id="compatibility"><a class="header" href="#compatibility">Compatibility</a></h3>
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<p>Updates to Polkadot.js Apps, API and its documentation and those referring to it may be required.</p>
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<h2 id="prior-art-and-references"><a class="header" href="#prior-art-and-references">Prior Art and References</a></h2>
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<h3 id="prior-art"><a class="header" href="#prior-art">Prior Art</a></h3>
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<p>No prior articles.</p>
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<h2 id="unresolved-questions"><a class="header" href="#unresolved-questions">Unresolved Questions</a></h2>
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<p>None</p>
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<h2 id="future-directions-and-related-material"><a class="header" href="#future-directions-and-related-material">Future Directions and Related Material</a></h2>
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<p>None</p>
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