@m96317c42
The reward multiplier must exceed the expected value of slashing loss, calculated as the slashing probability multiplied by the penalty. For a 1% annual slashing risk and a 1x penalty, rewards must be at least 1% APR for risk-neutral break-even. However, to attract risk-averse operators, a significant risk premium is required, often making the practical multiplier 3-5x the expected loss.
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