How Does ‘Slashing’ Work as a Penalty Mechanism in Proof-of-Stake?

Slashing is a punitive measure designed to deter malicious or negligent behavior by validators in a Proof-of-Stake system. If a validator attempts to double-sign a block or remains offline for an extended period, a portion of their staked collateral (their funds) is forcibly removed or 'slashed' by the protocol.

This economic disincentive ensures validators act honestly and maintain network integrity.