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Mobile ad hoc networks, which could be deployed rapidly as multi hop packet networks with relatively low expense unlike traditional wireless networks, are more suitable for critical applications such as military and disaster scenarios and also for commercial applications like sensor networks and conferencing. Packet dropping is a more expensive offense in a resource constraint network such as an ad hoc network, as it degrades the performance very severely. This paper presents a proactive distributed authentication mechanism using a dynamic trust management that blacklists the nodes, which drop packets. The significance of this mechanism is to enforce cooperation among nodes to augment the throughput of the network. Prime objective of this paper is to detect and also correct the selfish behavior of the mobile nodes dynamically, which helps to isolate the malicious nodes from using the network services and thereby controlling the packet dropping significantly.