# Exits from Beacon Chain under DKG paradigm ### Constrains - withdrawal key is needed to generate exit message - exit tx is tied to specific epoch - withdrawals tx must also be signed by the withdrawal key ### Formulating the problem - withdrawal key is a secret that is needed to withdraw funds from BC - under DKG this secret must be reconstructed for exit to happen - failure mode if the this secret is lost - The validator's balance will continue to decrease due to the inactivity leak penalty until it falls below a minimum threshold. Then the validator will be force exited from the network. ### Possible solutions #### Guardians In the DKG ceremony the splitting of the secret is $m/n$ where $m$ is the neccesary treshold to reconstruct it. Normally $n=NumOperators$, this can be changed to $n=NumOperators+Guardians$. e.g. DKG ceremony would include 4 Operators and 2 Guardians, where the $m/n$ is $3/6$. Guardians still cannot reconstruct the secret on their own and need to cooperate with at least 1 operator. **failure mode** if 2 or 3 Operators offline, key Guardians can be requested to perform the key regeneration ceremony or validator exit. **ELI5 explainer** https://twitter.com/markoinether/status/1577674090453803008?s=20 **trade off** - more parties that hold the secret, 6 instead of original 4, thus more opportunity for collusion. #### Collateral requriment Require enough collateral from NOs to cover the loss incurred by the ballance leak and forced exit. should be around $~16ETH$.