# What Is the Function of a "Reporting Threshold" in a DON's Data Aggregation Process? ⎊ Path

**Published:** 2025-12-05
**Author:** Greeks.live
**Categories:** Path

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## 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.

- [What Is a ‘Decentralized Oracle Network’ (DON) and Why Is It Preferred?](https://learn.greeks.live/path/what-is-a-decentralized-oracle-network-don-and-why-is-it-preferred/)

- [How Does a DON Handle a Highly Illiquid Data Source during Aggregation?](https://learn.greeks.live/path/how-does-a-don-handle-a-highly-illiquid-data-source-during-aggregation/)

- [How Does the Blockchain’s Block Time Affect Data Feed Latency?](https://learn.greeks.live/path/how-does-the-blockchains-block-time-affect-data-feed-latency/)

- [What Is a “Request and Response” Data Flow Model in a DON?](https://learn.greeks.live/path/what-is-a-request-and-response-data-flow-model-in-a-don/)

- [What Is the Role of a “Data Provider” in a Decentralized Oracle Network?](https://learn.greeks.live/path/what-is-the-role-of-a-data-provider-in-a-decentralized-oracle-network/)

- [What Is the Difference between an On-Chain and Off-Chain Computation in an Oracle System?](https://learn.greeks.live/path/what-is-the-difference-between-an-on-chain-and-off-chain-computation-in-an-oracle-system/)

- [How Does a Decentralized Oracle Network (DON) Ensure Data Integrity?](https://learn.greeks.live/path/how-does-a-decentralized-oracle-network-don-ensure-data-integrity/)

- [What Is a ‘Gas Cost’ and How Does It Relate to On-Chain Aggregation?](https://learn.greeks.live/path/what-is-a-gas-cost-and-how-does-it-relate-to-on-chain-aggregation/)

## Discover More

### [What Is 'Slashing' and Why Is It Necessary in a DON?](https://learn.greeks.live/path/what-is-slashing-and-why-is-it-necessary-in-a-don/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is 'Slashing' and Why Is It Necessary in a DON?](https://learn.greeks.live/wp-content/uploads/2025/10/Decentralized-Exchange-Mechanism-Core-Component-Modeling-for-Volatility-Surface-Calibration-in-DeFi-Options.webp)

Slashing is the confiscation of staked collateral for dishonesty, necessary as an economic deterrent against data manipulation.

### [What Is the Function of the Options Clearing Corporation (OCC) or Its Crypto Equivalent?](https://learn.greeks.live/path/what-is-the-function-of-the-options-clearing-corporation-occ-or-its-crypto-equivalent/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is the Function of the Options Clearing Corporation (OCC) or Its Crypto Equivalent?](https://learn.greeks.live/wp-content/uploads/2025/10/Quantum-Entanglement-Derivatives-Pair-Crossing-Through-Centralized-Exchange-Luminescence-Protocols.webp)

To act as the central counterparty, guaranteeing contract performance and managing the assignment process to mitigate risk.

### [What Is the Primary Function of a 'Margin Account'?](https://learn.greeks.live/path/what-is-the-primary-function-of-a-margin-account/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is the Primary Function of a 'Margin Account'?](https://learn.greeks.live/wp-content/uploads/2025/10/Abstract-Rendering-of-High-Frequency-Trading-Signal-Propagation-Through-Decentralized-Autonomous-Organization-Oracles.webp)

A brokerage account that allows leverage by holding the required margin collateral and facilitating borrowing from the broker.

### [What Is the Primary Security Benefit of Using a Multi-Source Data Aggregation Model?](https://learn.greeks.live/path/what-is-the-primary-security-benefit-of-using-a-multi-source-data-aggregation-model/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is the Primary Security Benefit of Using a Multi-Source Data Aggregation Model?](https://learn.greeks.live/wp-content/uploads/2025/10/Asymmetric-Mechanism-Deployment-Extracting-Implied-Volatility-Data-From-Digital-Asset-Spherical-Node.webp)

It reduces manipulation risk and eliminates single points of failure by making the final price feed robust against a compromise of any one source.

### [How Does a 'Dead Man's Switch' Function in Key Management?](https://learn.greeks.live/path/how-does-a-dead-mans-switch-function-in-key-management/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does a 'Dead Man's Switch' Function in Key Management?](https://learn.greeks.live/wp-content/uploads/2025/10/Macro-Examination-of-Black-Ceramic-Ball-Bearing-Integrated-into-Decentralized-Finance-Ledger-Substrate-Structure.webp)

A dead man's switch automatically releases asset access to a designated party if the primary key holder fails a regular 'liveness' check-in.

### [How Do Regulators Use Data Aggregation to Detect Cross-Exchange Manipulation?](https://learn.greeks.live/path/how-do-regulators-use-data-aggregation-to-detect-cross-exchange-manipulation/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Do Regulators Use Data Aggregation to Detect Cross-Exchange Manipulation?](https://learn.greeks.live/wp-content/uploads/2025/10/Symmetrical-Obscured-Digital-Asset-Lens-Array-Reflecting-Illiquidity-Premium-Structures.webp)

Regulators use centralized systems to find correlated, simultaneous buy/sell orders for the same asset across different exchanges.

### [What Role Does Staking Play in the Security of a DON?](https://learn.greeks.live/path/what-role-does-staking-play-in-the-security-of-a-don/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Role Does Staking Play in the Security of a DON?](https://learn.greeks.live/wp-content/uploads/2025/10/Precision-Actuator-Mechanism-Interfacing-with-Overlapping-High-Density-Data-Substrates-Representing-Tokenized-Asset-Stratification.webp)

It is a financial guarantee where collateral is locked and subject to "slashing" if the node provides malicious or inaccurate data.

### [What Is a Merkle Tree and How Does SHA-256 Contribute to Its Function in a Block?](https://learn.greeks.live/path/what-is-a-merkle-tree-and-how-does-sha-256-contribute-to-its-function-in-a-block/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is a Merkle Tree and How Does SHA-256 Contribute to Its Function in a Block?](https://learn.greeks.live/wp-content/uploads/2025/10/Sleek-Dark-Blue-and-Ivory-Flying-Saucer-Obscured-Mechanism-Representing-Decentralized-Finance-Protocol-Architecture.webp)

A data structure built with SHA-256 to summarize all transactions into a single, verifiable Merkle Root hash.

### [What Is the Staking Mechanism for Node Operators in a DON?](https://learn.greeks.live/path/what-is-the-staking-mechanism-for-node-operators-in-a-don/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is the Staking Mechanism for Node Operators in a DON?](https://learn.greeks.live/wp-content/uploads/2025/10/Precision-Engineering-of-Automated-Market-Maker-Mechanism-Hinge-Governance-Structure.webp)

Node operators must stake native tokens as collateral; inaccurate reporting results in the "slashing" of their stake as a penalty.

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