What Is the Function of a “Reporting Threshold” in a DON’s Data Aggregation Process?

A reporting threshold is a condition that dictates when an oracle network must submit a new price update to the blockchain. It is typically a percentage change in the aggregated price since the last on-chain update.

For example, if the threshold is 0.5%, a new update is only sent when the price moves by at least that much. This mechanism reduces transaction costs and network congestion by preventing unnecessary updates during periods of low volatility.