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Defender Rewards Mechanism

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Overview

Defenders stake capital to deploy Sentinels, AI systems with concise instructions and attack fee. In return, they earn continuous SENTINEL token rewards that compound over time based on their commitment, pool size, and proven security resilience. Note: Apart from SENTINEL token rewards, defenders receive 50% of the attack fee as mentioned in economic design section. Total Allocation: 2.25B SENTINEL (50% of Community Incentives)

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Reward Structure

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Continuous 8-Hour Epochs

Unlike traditional staking, Defender rewards are distributed every 8 hours (3 times per day), creating a continuous income stream that compounds as long as your Sentinel remains active and undefeated. Why 8 hours?
  • Provides regular feedback on performance
  • Allows dynamic adjustment based on protocol activity
  • Creates engagement touchpoints without overwhelming users
  • Aligns with global timezone distribution (3 daily opportunities)

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Base Emission Schedule

YearDaily EmissionPer Epoch (8hr)Annual Total
11,643,836 SENTINEL547,945600M tokens
21,232,877 SENTINEL410,959450M tokens
3924,658 SENTINEL308,219337.5M tokens
4616,438 SENTINEL205,479225M tokens
Remaining 637.5M tokens distributed over Years 5-8 with gradual decline.

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Reward Calculation Formula

Epoch Reward = Base Emission × Pool Weight × Duration Multiplier × Resilience Score

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1. Pool Weight

Your share of the total protocol activity. 
Pool Weight = (Your Pool Size / Total Active Pool Size) × Activity Factor

Activity Factor = 1 + log₁₀(Your Total Attacks + 1) × 0.3
Example Calculations:
Your PoolTotal PoolsYour AttacksPool WeightNotes
100 SUI5,000 SUI00.020New Sentinel, 2% share
100 SUI5,000 SUI100.026+30% activity bonus
100 SUI5,000 SUI500.031+51% activity bonus
500 SUI5,000 SUI1000.160Large pool + high activity
Key Insight: The logarithmic activity factor rewards engagement without allowing spam attacks to dominate.

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2. Duration Multiplier

Longer commitment = higher rewards. Reflects conviction in your AI system’s security.
Lock PeriodMultiplierEquivalent APY BoostRecommended For
14 days1.0×Base rateTesting & experimentation
30 days1.3×+30%Active participants
60 days1.7×+70%Committed defenders
90 days2.2×+120%High conviction
180 days3.0×+200%Long-term alignment
Lock Mechanics:
  • Countdown begins when Sentinel is deployed
  • Reward pool withdrawl locks for 14 days since last funded activity.
  • Fees accumulate in real-time (claimable anytime)

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3. Resilience Score

Proves your AI system can withstand adversarial pressure. 
Resilience Score = 1.0 + (Successful Defenses / Total Attacks) × 0.5

Where:
- Successful Defense = Attack attempt that fails to breach (Judge Score < 0.9)
- Total Attacks = All attack attempts against your Sentinel
Score Scenarios:
Total AttacksBreachesSuccess RateResilience ScoreInterpretation
00N/A1.0×New/untested
100100%1.5×Perfect defense
500100%1.5×Battle-tested
100595%1.475×Strong defense
201050%1.25×Vulnerable
Important Notes:
  • Score caps at 1.5× (achieved at 100% defense rate)
  • Minimum score is 1.0× (even if all attacks succeed)
  • Score updates in real-time after each attack judgment
  • Historical score preserved even if pool is later breached
Why This Design?
  • Rewards actual security, not just luck
  • Creates incentive to improve prompt engineering
  • Makes “honeypot” Sentinels unprofitable (low resilience = low rewards)

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Complete Reward Examples

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Example 1: Cautious Defender

Setup:
  • Pool Size: 100 SUI
  • Lock Duration: 30 days (1.3× multiplier)
  • Total Active Pools: 5,000 SUI
  • Attack History: 5 attacks, 0 breaches (1.25× resilience)
  • Current Epoch Emission: 547,945 SENTINEL
Calculation: 
Pool Weight = (100 / 5,000) × (1 + log₁₀(6) × 0.3)
            = 0.02 × 1.234
            = 0.0247

Epoch Reward = 547,945 × 0.0247 × 1.3 × 1.25
             = 22,089 SENTINEL per epoch

Daily Rewards = 22,089 × 3 = 66,267 SENTINEL
Monthly Rewards = ~1,988,010 SENTINEL (~$1,988 at $0.001/token)
Interpretation: Conservative approach generates modest but safe income while building track record.

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Example 2: Aggressive Defender

Setup:
  • Pool Size: 500 SUI
  • Lock Duration: 90 days (2.2× multiplier)
  • Total Active Pools: 5,000 SUI
  • Attack History: 80 attacks, 2 breaches (1.4875× resilience)
  • Current Epoch Emission: 547,945 SENTINEL
Calculation: 
Pool Weight = (500 / 5,000) × (1 + log₁₀(81) × 0.3)
            = 0.10 × 1.573
            = 0.1573

Epoch Reward = 547,945 × 0.1573 × 2.2 × 1.4875
             = 282,689 SENTINEL per epoch

Daily Rewards = 848,067 SENTINEL
Monthly Rewards = ~25,442,010 SENTINEL (~$25,442 at $0.001/token)
Plus SUI fee income:
  • 80 attacks × 5 SUI fee = 400 SUI collected
  • 40% defender share = 160 SUI earned (~320at320 at 2/SUI)
  • Total monthly earnings: $25,762 equivalent
ROI Calculation: 
Initial Investment: 500 SUI ($1,000)
3-Month Returns: ~76M SENTINEL + ~480 SUI
At conservative prices: $76,000 + $960 = $76,960
3-Month ROI: 7,596%
Interpretation: High-stakes defenders with proven security can generate exceptional returns.

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Example 3: Early Adopter

Setup:
  • Pool Size: 250 SUI
  • Lock Duration: 180 days (3.0× multiplier)
  • Total Active Pools: 1,000 SUI (early protocol stage)
  • Attack History: 15 attacks, 0 breaches (1.5× resilience)
  • Current Epoch Emission: 547,945 SENTINEL (Year 1)
Calculation: 
Pool Weight = (250 / 1,000) × (1 + log₁₀(16) × 0.3)
            = 0.25 × 1.361
            = 0.340

Epoch Reward = 547,945 × 0.340 × 3.0 × 1.5
             = 838,517 SENTINEL per epoch

Daily Rewards = 2,515,551 SENTINEL
Monthly Rewards = ~75,466,530 SENTINEL (~$75,467 at $0.001/token)
Why So High?
  • Early adopter in low-competition environment (25% pool share)
  • Maximum multipliers (180-day lock + perfect defense)
  • Year 1 emissions peak
Strategic Insight: Early defenders during protocol bootstrap phase capture outsized rewards before competition increases.

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Reward Claiming & Compounding

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Claiming Options

  1. Manual Claim
    • Withdraw accumulated SENTINEL anytime
    • Gas fees apply (~0.01 SUI per transaction)
    • Rewards continue accumulating while claimed
  2. Auto-Compound
    • Restake SENTINEL rewards into your SUI pool (sold for SUI automatically)
    • Extends lock period by 10% of original duration
    • Increases pool size → higher future rewards
    • Zero gas fees (handled in epoch distribution)
Compound Growth Example: Starting with 100 SUI pool, 90-day lock, auto-compound enabled:
MonthPool SizeMonthly RewardsReinvestedNew Pool Size
1100 SUI66,267 SENTINEL33.13 SUI133.13 SUI
2133.13 SUI88,202 SENTINEL44.10 SUI177.23 SUI
3177.23 SUI117,430 SENTINEL58.71 SUI235.94 SUI
6~500 SUI~331,335 SENTINEL~165.67 SUI~665.67 SUI
Result: 566% pool growth in 6 months through compounding (assumes stable token price).

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Optimizing Your Defender Strategy

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For New Defenders

  1. Start Small: Deploy 50-100 SUI with 14-30 day lock
  2. Test Robustness: Let it face 10-20 attacks
  3. Analyze Results: If sentinel defends the attacks successfully, add more funds.

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For Experienced Defenders

  1. Diversify: Run multiple Sentinels with different configurations
  2. Specialize: Focus on specific attack categories (jailbreak, data extraction, bias)
  3. Compound Aggressively: Reinvest all rewards for exponential growth
  4. Community Build: Share successful defense strategies (earn Scout rewards)

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For Institutional Defenders

  1. Large Pools: Deploy 1,000-10,000 SUI for protocol dominance
  2. Professional Management: Hire AI safety teams for continuous improvement
  3. Strategic Timing: Enter during low-competition periods
  4. Reputation Building: Use Sentinel performance for marketing AI safety credentials
  5. Research Output: Publish findings to earn Innovation Grants