What Is the Significance of ‘Slashing’ in a Proof-of-Stake (PoS) System?

Slashing is a punitive mechanism where a validator's staked cryptocurrency is partially or fully taken away if they act maliciously or fail to perform their duties correctly. This includes double-signing transactions or prolonged downtime.

Its significance is that it provides a strong economic disincentive for misbehavior, securing the network by ensuring validators act honestly and reliably.