How Do Slashing Penalties in PoS Affect a Validator’s Net Fee Revenue?

Slashing is a penalty where a portion of a validator's staked capital is permanently removed for malicious or negligent behavior (e.g. double-signing a block or being offline). While it doesn't directly affect the fee revenue per block, the loss of staked capital reduces the validator's future staking power and, consequently, their expected future fee and reward revenue.