Security

Collateral and slashing: how the network is protected

For the network to operate honestly, hosts lock GNK as collateral. It's like a security deposit for an apartment rental: as long as everything is in order, the money is yours. Break the rules — you lose a part of it.

Why collateral is needed

Collateral is GNK locked by a host in a smart contract. It guarantees honesty: if the host acts diligently — they receive full rewards and can withdraw the collateral upon exit. If they try to trick the network — they lose part of the collateral. Without collateral, the host receives only 20% of possible rewards (base weight).

How slashing works

Slashing is a penalty, an automatic write-off of part of the collateral. 20% of the collateral is lost for fraud — attempting to send a fake answer instead of a real inference. 10% is lost for prolonged downtime, when the node doesn't respond to requests. The rules are strict but fair: honest hosts never lose collateral.

Grace Period

When the mainnet launched (August 2025), a Grace Period was established – 180 epochs (~6 months), during which collateral was not required. This gave new hosts time to earn their first tokens and understand the system. After the Grace Period ends, the full collateral model applies. It is recommended to have a collateral buffer of 2x the minimum. Check the current status in the community.
Collateral protects the network from fraudsters. Honest hosts lose nothing and earn full rewards. Dishonest ones lose 10-20% of their collateral. A grace period without collateral is currently active.

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