Penalty rules

As mentioned in previous sections of the documentation, certain accounts will undergo penalization payments during their activities. The total payment or profit gain that an account would pay/receive depends on their current penalty level. If you want to find out more on penalty levels please check out this page of the documentation.

Also worth noting is that project owner accounts undergo a combinatory penalization depending on which action they are performing. For example, if a project owner has a penalty level and he/she wishes to propose another project for the pallet, the will only need to pay out the penalty for their penalty level. On the other hand if the project owner wishes to proposes another carbon credit batch, where the batches corresponding project has also a penalty level, the project owner will need to pay out the cumulative penalty level (i.e. owner_penalty_level * project_penalty_level).

Penalizations also work during the profit payouts from carbon credit sales. For example if a project owner has the penalty level of 1 where the penalization is at a 167%, this means that the amount of credits he/she will receive from a carbon credit sale is equal to the initial sale price (after the profit splitting has occurred) divided by 167%. The amount of gains that was not recieved by the project owner will be then allocated to the pallet.