Files
papers/lux-economics/sections/11-security-analysis.tex
zeekayandHanzo Dev 178febad68 papers: reconcile T-Chain -> M-Chain / F-Chain / B-Chain per LP-134
Every rendered "T-Chain" / "ThresholdVM" / "teleportvm" reference across
the paper corpus is rewritten to the correct canonical chain by concern:
threshold signing / MPC / bridge custody / key recovery -> M-Chain (MVM);
FHE / encrypted compute / threshold decryption -> F-Chain (FVM); teleport
/ cross-chain messaging -> B-Chain (bridgevm); consensus Pulsar stays
Q-Chain. Section lux-trust-kernel/03-t-chain-threshold-governance.tex
renamed -> 03-f-chain-encrypted-policy.tex (with \input + xref fixes).
Braided "T-Chain" sections split by concern (M vs F). Only lp-020's
chain-separation rationale and the shared lux/chains/thresholdvm library
path retain the name, to record the removal. All changed papers rebuilt
(pdflatex, rc=0, no undefined refs).

ยง09 of lux-dao-governance-framework reframed: fabricated "production
deployment" metrics ($50M/$240k/$12M, survey %s, "as of Oct 2024")
relabeled as illustrative design configurations with no invented
replacements; reality noted (DAO treasury is a 1/1 Safe); conclusion
echo + one "first production" overclaim softened.

This commit also captures concurrent corpus workstreams on the same tree.

Co-authored-by: Hanzo Dev <[email protected]>
2026-07-02 00:57:09 -07:00

44 lines
2.0 KiB
TeX

\section{Security Analysis}
%%==========================================================================
\subsection{Validator Incentive Alignment}
The proposed mechanisms are incentive-compatible in the following sense:
\begin{theorem}[Validator Truthfulness]
Under Mechanism C with the ASF protocol, it is a dominant strategy for validators to
truthfully report their capacity $K$ and honestly participate in appchains they have opted into.
\end{theorem}
\begin{proof}[Proof Sketch]
Overstating $K$ leads to accepting more appchains than the validator can serve, triggering
liveness faults and reputation slashing. Understating $K$ forgoes positive-value
opportunities. Hence truthful reporting maximizes expected utility. Dishonest participation
(agreeing to validate but not validating) triggers liveness slash penalties that exceed
the validator's potential gain from saved resources.
\end{proof}
\subsection{Collusion Resistance}
A coalition of validators might coordinate to extract MEV without sharing proceeds
through the CAMO mechanism. The CAMO is resistant to such collusion because:
\begin{enumerate}[leftmargin=1.5em]
\item Lux Teleport bridges emit on-chain events visible to the CAMO oracle;
\item Any cross-appchain arbitrage that bypasses the CAMO auction is detectable by
comparing Lux Teleport event timestamps with block production timestamps;
\item Detected collusion triggers a reputation slash of 50 points per incident.
\end{enumerate}
\subsection{Economic Attack Resistance}
We consider an attacker who creates many low-cost appchains to manipulate the ASF
distribution (collecting ASF revenue by artificially inflating appchain transaction counts).
The ASF formula (Eq.~\ref{eq:surcharge}) ties surcharge amounts to observed security
$\Pi(s)$, which requires real staked capital. An attacker cannot inflate transaction
count without also posting economic collateral proportional to their claimed security,
making the attack unprofitable.
%%==========================================================================