4). Punishment Mechanism (Slashing)

To prevent malicious behavior or inefficient operation by validator nodes, MTT Network has introduced a punishment mechanism, known as "slashing." When a validator node encounters the following situations, their staked MTT tokens may be partially or fully slashed:

• Double Signing: A validator node signs two different blocks simultaneously, which is a serious malicious behavior and will result in severe slashing penalties.

• Downtime or Instability: If a validator node is offline for an extended period or unable to maintain stable operation, network security and consensus processes may be affected, resulting in slashing of the validator's staked tokens.

• Other Malicious Behaviors: Including but not limited to deliberately submitting incorrect information during consensus, manipulating voting results, etc., which will trigger the slashing mechanism.

The slashing mechanism is not only a punishment for validators but also protection for the entire network, ensuring that validator nodes fulfill their duties and maintain network security and stability.