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Update operator blame description terms
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shanejearley committed Aug 11, 2023
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14 changes: 7 additions & 7 deletions contracts/ethereum/README.md
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Expand Up @@ -214,22 +214,22 @@ Collateral is used to recover lost validator effective balance at the time of co

Let:

- $\( E \)$ be the total ETH lost, where $\( 0 \leq E \leq 4 \)$.
- $\( P_i \)$ be the performance percentage of the $\( i^{th} \)$ operator, where $\( 0 \leq P_i \leq 100 \)$ for $\( i = 1, 2, 3, 4 \)$.
- $\( B_i \)$ be the blame amount for the $\( i^{th} \)$ operator.
- $ethLost$ be the total ETH lost, where $0 \leq E \leq 4$.
- $performance_i$ be the performance percentage of the $i^{th}$ operator, where $0 \leq performance_i \leq 100$ for $i = 1, 2, 3, 4$.
- $blameAmount_i$ be the blame amount for the $i^{th}$ operator.

If all operators have equal performance, the blame is evenly distributed:
$\[ B_i = \frac{E}{4} \quad \text{for all } i \]$
$blameAmount_i = \frac{ethLost}{4} \quad \text{for all } i$

Otherwise, the blame is distributed inversely proportional to performance:
First, calculate the inverse of each performance:
$\[ I_i = 100 - P_i \]$
$inversePerformance_i = 100 - performance_i$

Then, the sum of all inverses:
$\[ S = \sum_{i=1}^{4} I_i \]$
$inversePerformance_sum = \sum_{i=1}^{4} inversePerformance_i$

Now, the blame for each operator is:
\[ B_i = \left( \frac{I_i}{S} \right) \times E \]
$blameAmount_i = \left( \frac{inversePerformance_i}{inversePerformance_sum} \right) \times ethLost$

The blame amounts are submitted by the DAO oracle in response to a completed validator reshare or exit.

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