The Principle: Penalties Follow Process
PressChain penalties are never discretionary. No individual, company, or organization can penalize you because they dislike your reporting, your political angle, or your outlet’s editorial position. Every penalty flows from one of three sources:- A court verdict (juror-determined, process-driven)
- Automated contract logic (non-response deadlines, bond minimums)
- A governance proposal that passed full public vote
Real Scenario: What Happens When Things Go Wrong
Scenario A - The Non-Response (Most Common)
David Okafor, editor at The Bay Tribune, published a local government piece. A city official challenges one specific claim through PressChain Court. David gets a summons. He’s traveling and misses the notification for 4 days - past the response deadline. What happens automatically:- Default judgment issued on the disputed claim
- Minor bond penalty applied to David’s Reporter bond
- Reputation score reduced by ~0.2 points
- No distribution downgrade for a first offense
Scenario B - Misleading Content Finding
A reporter at an outlet submits a Capsule with factually accurate statistics presented in a context that implies something the numbers don’t actually support. A juror panel reviews the evidence and votes 5-2 that the presentation is misleading. What happens:- Capsule labeled Misleading (permanent, on-chain)
- Reporter’s reputation score reduced by ~0.35 points
- Outlet’s distribution tier reviewed (no immediate change for a single finding)
- No bond slashing (misleading ≠ fraudulent)
Scenario C - Fraudulent Finding (Severe)
A court case finds that a Capsule contained fabricated quotes attributed to a source that didn’t exist. What happens automatically:- Capsule labeled Fraudulent (permanent)
- Bond slashing executed by BondManager contract (30–100% depending on severity)
- Major reputation reduction (~0.8+ points)
- Distribution tier downgrade for the outlet
- Role suspension possible if bond drops below minimum
Penalty Reference Table
| Trigger | Type | Severity |
|---|---|---|
| Court: Misleading verdict | Reputation reduction | Medium |
| Court: Fraudulent verdict | Bond slash + major reputation hit | Severe |
| Summons non-response (first) | Default judgment + minor bond penalty | Medium |
| Summons non-response (second) | Escalated penalty + reputation reduction | High |
| Summons non-response (third+) | Major slash + role suspension trigger | Very High |
| Juror non-participation when selected | Juror bond penalty | Medium |
| Frivolous dispute (baseless challenge) | Dispute bond forfeiture | Medium |
| Domain verification lapse | Publishing paused (not a slash) | Low |
| Bond below minimum | Role suspended until topped up | Low |
| Spam voting detected | Reputation reduction + rate limiting | Medium |
| Press Network feed disabled | Brand Separation Fee + downgrade | Medium |
The Non-Response Ladder
Non-response is the most common issue. The consequences escalate deliberately:First non-response
Default judgment. Minor bond penalty. Reputation reduction. The case continues from the evidence window - you can still participate, just without the initial response advantage.
Second non-response (different case)
Escalated bond penalty (higher percentage). Compounding reputation reduction. Distribution tier downgrade triggered.
Third non-response
Major bond slash. Role suspension initiated. Permanent public log entry on-chain.
Bond Slash Amounts
Slash percentages are determined by the court case and applied automatically:| Court Verdict | Approximate Slash Range |
|---|---|
| Misleading (non-willful) | 0% - no slash |
| Misleading (willful/pattern) | 5–15% of bonded amount |
| Fraudulent | 30–100% of bonded amount |
What Cannot Happen
To be clear about what the protocol prevents:- ❌ The Foundation cannot penalize you for your editorial position
- ❌ A powerful advertiser cannot trigger penalties through pressure
- ❌ Losing a court case as the defending party (when found misleading) does not cause bond slashing by default
- ❌ Low acceptance rates are not penalized directly - only through natural distribution tier effects
- ❌ The Council cannot override court verdicts or apply arbitrary penalties
How to Recover
After a Reputation Hit
Reputation recovers through consistent good-faith participation:- Vote regularly and honestly
- Respond promptly to any court summons
- Publish work that passes acceptance
- Participate as a Juror when selected
After a Bond Slash
- Check Portal → Roles → see how much was slashed and why
- Top up your bond to restore above the minimum
- Role reactivates immediately after top-up
- Bond stability clock doesn’t reset to zero but reflects the penalty period
After Role Suspension
- Resolve the underlying issue (top up bond, respond to court case)
- Portal shows the specific resolution required
- Role reactivates automatically once requirements are met
- No additional waiting period beyond resolution itself
Appealing a Penalty
Court-applied penalties can be appealed through governance:- Go to proposals.presschain.io
- Submit an appeal proposal with the case ID and new evidence
- Lock an appeal bond (forfeited if rejected)
- Governance votes on whether to re-open the case