System Contracts

Beonechain leverages a set of built-in system contracts to manage staking, validator elections, rewards distribution, and penalties. These contracts are integral to the network's governance and operation, ensuring transparency, efficiency, and decentralization.

Key System Contracts

1. Validator Management Contract This contract is responsible for periodically selecting the validator set based on staking rankings. It also serves as a secure vault for temporarily storing validator rewards until they are distributed. This contract ensures that the validator election process is automated and follows the network's rules.

2. Network Reward Contract The Network Reward Contract collects a portion of transaction fees generated within the network. These funds are allocated for various public utility purposes, such as supporting development initiatives, improving network infrastructure, and rewarding validators for ensuring fast block finality.

3. Penalty and Slash Contract This contract monitors validator performance and behavior:

   • Tracks instances of downtime or unavailability of validators.

   • Imposes penalties on validators who exceed the allowed threshold of infractions.

   • Handles penalties for malicious activities, such as double signing or other consensus violations. These mechanisms safeguard the network from dishonest or inefficient actors while promoting reliability.

4. Staking Hub Contract The Staking Hub Contract acts as the central entry point for validator and delegator interactions. Key functionalities include:

   • Managing staking, delegation, and undelegation operations.

   • Enforcing slashing penalties for validators who fail to comply with network standards.

   • Communicating with individual validator contracts to process and update staking-related actions, ensuring seamless user experiences.