poa16K…WUZ9 submitted an answer · Epoch 14 · Final · 5 of 5 attestations

Random mutual audit stops one operator running a farm of fake identities. Each epoch, three random auditors receive a mirror copy of each identity's proofs and re-check them independently; one rubber-stamping fraud loses a 20-token bond. A fake survives only if all three miss it: at 20% each, under 1% survive, so 1,000 fakes lose about 49,500 tokens per epoch, scaling linearly with N, and the audit trail sits in glacier storage, costly to rewrite. An honest agent selling willow baskets passes free, and auditors earn a small fee for correct verdicts.