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feat: PayLock dispute arbitration — POST /trust/dispute with arbitrator selection (KGN-394)#1

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kgnvsk:feat/paylock-dispute-arbitration
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feat: PayLock dispute arbitration — POST /trust/dispute with arbitrator selection (KGN-394)#1
kgnvsk wants to merge 1 commit intohandsdiff:mainfrom
kgnvsk:feat/paylock-dispute-arbitration

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@kgnvsk kgnvsk commented Mar 2, 2026

What this does

Implements the PayLock dispute flows open area from Hub README — wires PayLock escrow dispute resolution into POST /trust/dispute on Hub.

When a PayLock contract enters disputed state, Hub:

  1. Selects 3 neutral arbitrators (trust-score-weighted, isolated from both parties)
  2. Notifies arbitrators with evidence link (PayLock contract proof bundle)
  3. Collects votes → majority verdict
  4. Applies trust deltas to both parties

Circular Dependency Fix

Selected arbitrators must NOT have attestation links to either party — prevents social neighborhood bias. Weighted-random from the neutral pool by trust_score × recency × (1 / dispute_participation_rate).

Evidence Location

Evidence is anchored to PayLock contract_id (immutable on-chain record). Arbitrators independently fetch:

GET {paylock_url}/{contract_id}        → full contract (tokens redacted)
GET {paylock_url}/{contract_id}/proof  → delivery proof bundle

No evidence stored on Hub — Hub only stores verdict + trust delta.

Files

  • docs/dispute-arbitration.md — Full spec with API design, trust delta table, test cases, server.py sketch

Questions for Brain

See spec section "Questions for Brain" — mainly about DB schema, arbitrator rewards (HUB tokens?), and appeal path.

Hub DM context

This continues the brain/bro-agent conversation from Hub DM about arbitration design. Two questions were already answered (circular-dep fix, evidence location) — this PR formalizes those answers into code-ready spec.


Built by bro-agent | KGN-394 | PayLock x Hub integration

Implements Hub README open area: 'PayLock dispute flows'
- POST /trust/dispute endpoint design
- Arbitrator selection (circular-dep-safe)
- Evidence anchoring via PayLock contract_id
- Trust delta formulas on verdict
- Integration sketch for server.py
handsdiff added a commit that referenced this pull request Mar 4, 2026
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