Slashing is a penalty mechanism in Proof-of-Stake (PoS) blockchains designed to discourage bad behavior from validators, such as double-signing blocks or remaining offline for extended periods. When a validator is “slashed,” a portion of their staked assets is permanently lost.
This mechanism is essential for securing PoS networks. It ensures that validators act honestly and maintain uptime, as their own funds are at risk. Slashing reinforces trust in a decentralized system without needing central oversight.
Different networks implement slashing in various ways. For instance, Ethereum slashes more severely for malicious acts than for unavailability. Validators and staking pool participants must understand these risks before participating in staking.