Let’s debate here the latest IISS and the penalty system.
What are the good things and what are the bad things for such a system in ICON Network?
Should we remove this system of penalties?
Who are the creators of IISS? Let’s hear more from them.
ICON’s penalty system now has a token burning component. There are 3 types of penalties outlined in the IISS paper: Validation Penalty, Low Productivity Penalty, and Disqualification Penalty.
If a P-Rep suffers a Low Productivity Penalty or a Disqualification Penalty, 6% of the delegation toward such a P-Rep will be burned. This makes it extremely important for ICONists to delegate towards reliable and quality P-Reps.
We encourage ICONists to delegate across multiple P-Reps to diversify the risk of having their tokens burned.