Docs/Protocol/The mechanism

The mechanism

ProofLabel aligns financial incentives with truth-telling. Every participant has money at risk.

Skin in the game

Brands deposit USDC to publish claims. Challengers deposit USDC to dispute them. Both face real financial loss if wrong. This pushes the system toward honesty.

Adversarial verification

A false claim with $500 staked = a $250 bounty for whoever proves it wrong. The larger the stake, the more incentive for scrutiny.

No trust required

The escrow smart contract on Base handles all fund movements. When an arbiter rules, the contract distributes funds automatically. No overrides, no delays. Verify the contract yourself.

Permanent record

Every claim, challenge, and ruling is recorded permanently. Brands can't remove invalid claims. Labs can't hide losses. The pattern across hundreds of claims tells the real story.

The mechanism is designed to be boring when it works. Honest brands stake, nobody challenges, deposits return after 180 days.

The mechanism | Assay Network Docs