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How Does Slashing Impact the Supply of the Cryptocurrency?

Slashing permanently removes (burns) the penalized coins from the total circulating supply. By reducing the supply, slashing acts as a deflationary pressure on the cryptocurrency.

This mechanism reinforces the economic security of the network by making malicious behavior costly and benefiting honest holders.

How Does Staking Impact the Circulating Supply of a Coin?
How Does Coin Burning Affect the Total Supply of a Cryptocurrency?
What Is the Significance of the Supply/demand Balance for a Cryptocurrency’s Price?
What Is a Token Generation Event (TGE) and Its Initial Supply Impact?