The agreement is that the pool's entity X should remain intact, with half of the disputed funds allocated to the challenger while the remaining half is destroyed or "burned". This act of burning part of the bond serves as a precautionary strategy against sybil attacks, a type of security threat where the claimant and challenger might be colluding entities. By implementing this measure, any such entity would incur more than just the minimal fee cost, hence discouraging the execution of these attacks. This approach is acknowledged as a standard practice within the context of fraud proofs, ensuring the integrity of the system by imposing a higher risk for dishonest behavior.