What Is ‘Slashing’ and Its Purpose in a Proof-of-Stake System?
Slashing is a punitive mechanism in PoS protocols designed to maintain network integrity and deter malicious behavior. If a validator acts dishonestly, such as double-signing transactions or going offline when required, a portion of their staked cryptocurrency is automatically taken away (slashed) by the protocol.
This serves as a significant financial penalty and a strong incentive for honest participation.