3.4 Community-Based Verification Mechanism

Parax leverages a game theoretic, community driven verification mechanism for lower value assets falling within Tier III. When AI screening results are inconclusive, token holders or designated validators engage in a consensus voting process weighted by stake. Participants commit tokens to vote on asset authenticity, with final decisions determined via bonding curve models incorporating confidence scores and staking weight.

This mechanism incentivizes honest participation by rewarding correct voters and penalizing dishonest or erroneous votes through proportional slashing. Disputed cases can be escalated to Tier II expert validation, ensuring layered recourse.