What Is ‘Slashing’ in a Proof-of-Stake System and What Is Its Financial Consequence for a Validator?
Slashing is a penalty mechanism designed to enforce good behavior among validators in a Proof-of-Stake network. It involves the forced forfeiture and removal of a portion of the validator's staked cryptocurrency.
This penalty is triggered by malicious actions, such as double-signing transactions, or by extended periods of downtime. The financial consequence is a direct, permanent loss of capital for the validator.