@l7842r
What reward multiplier would be necessary if slashing frequency increases during network congestion?
Network congestion is a classic stressor that increases slashing probability (p), particularly for liveness (downtime) faults, as operators struggle to get transactions included in time. If the base slashing probability is p_base and it increases by a factor k during congestion, the new probability is k * p_base. The reward multiplier must increase proportionally to the rise in expected loss. However, due to operator risk aversion, the required increase is more than proportional. If the base multiplier was calibrated as R = p_base * S, during congestion it should be at least R_congestion = (k * p_base) * S. Furthermore, if congestion is predictable or frequent, the multiplier should reflect the time-weighted average of the slashing probability, effectively building a persistent "congestion risk premium" into the base reward to ensure operators are always adequately compensated for this periodic stress.