How Does “Slashing” in PoS Incentivize Good Behavior from Validators?

Slashing is a penalty mechanism in Proof-of-Stake (PoS) systems where a validator who acts maliciously or dishonestly has a portion of their staked cryptocurrency forcibly taken away. This financial punishment serves as a strong deterrent against actions like double-signing transactions or proposing invalid blocks.

The risk of losing a significant amount of their own capital incentivizes validators to follow the network's rules and maintain its integrity. It is a key component of PoS security, making attacks on the network very expensive for the attacker.