Skip to main content

How Does Slashing Promote Network Decentralization?

Slashing encourages validators to distribute their staked assets and operations across different geographical locations and technical setups. If a large validator has a centralized failure (e.g. a power outage), it risks a massive slash.

This risk incentivizes diversification, which naturally promotes a more robust and decentralized network.

How Does the Regulatory Environment Affect a DeFi Treasury’s Decision to Hold Fiat-Backed Stablecoins?
How Do Decentralized Autonomous Organizations (DAOs) Interact with Validators?
What Are the Potential Negative Consequences of Aggressive Deflation?
How Does “Slashing” in PoS Incentivize Good Behavior from Validators?