Nodes are not directly penalized for not storing all the blobs, but the reward system is adjusted based on the data successfully stored. If a node chooses to denylist a portion of the data, it simply won't receive rewards for it. For instance, if a node denylisted 10% of the data, it would only receive 90% of the rewards. The system is designed so that there are no significant benefits for nodes to denylist data. If they do, they just receive proportionally less in rewards. This method minimizes incentives for nodes to use the deny list to cut their operational costs. Ethically managing the deny list can maintain the integrity of storage nodes, and nodes can still participate in recovery efforts even if certain slivers are not re-distributed.