How Does “Slashing” in PoS Function as a Deterrent against Malicious Actors?

Slashing is a penalty mechanism in Proof of Stake (PoS) systems that discourages validator misbehavior. If a validator is found to have acted maliciously, such as by double-signing a block or proposing invalid transactions, a portion or all of their staked cryptocurrency is forcibly removed and destroyed or redistributed.

This direct financial penalty creates a powerful economic disincentive against attempting to compromise the network's integrity. The risk of losing a substantial capital investment ensures that validators have a strong incentive to follow the protocol rules honestly.