In Proof-of-Stake (PoS) blockchain networks, slashing is a penalty imposed on validators who engage in malicious or negligent behavior. When a validator fails to follow network rules, a portion of their staked assets is deducted as a punishment, ensuring the security and integrity of the blockchain. In this guide, we’ll explore how slashing works, why it happens, and how stakers can avoid slashing penalties.
📋 Table of Contents
How Slashing Works
Slashing is a built-in security mechanism in PoS blockchains that penalizes validators for misbehavior. If a validator violates network rules, a portion of their staked tokens is confiscated and either burned or redistributed to the network.
- Penalty Amount: The slashing amount varies depending on the severity of the offense.
- Validator Removal: In extreme cases, validators can be permanently removed from the network.
- Impact on Delegators: If a validator gets slashed, delegators who staked with them may also lose a portion of their funds.
Reasons for Slashing
Validators can be slashed for various reasons, including:
- Double Signing: A validator signs two conflicting blocks, attempting to cheat the network.
- Downtime: If a validator is offline for too long, they may be penalized for not participating in consensus.
- Equivocation: A validator sends contradictory messages to different parts of the network.
Blockchains That Use Slashing
| Blockchain | Slashing Penalty | Common Violations |
|---|---|---|
| Ethereum 2.0 | 0.5% - 100% of stake | Double signing, inactivity |
| Polkadot | Up to 100% of stake | Offline validators, double signing |
| Cosmos | 5% - 100% of stake | Downtime, double signing |
How to Avoid Slashing
- Choose a Reliable Validator: If you're delegating, research validators with good uptime and reputation.
- Monitor Validator Performance: Regularly check if your validator is active and follows network rules.
- Use Failover Systems: Validators should set up backup nodes to prevent downtime.
FAQ
What happens if my validator gets slashed?
You may lose a portion of your staked funds, depending on the severity of the penalty.
How can I protect my stake from slashing?
Choose a trustworthy validator with high uptime and no history of penalties.
Do all staking networks have slashing?
No, some staking networks like Tezos use soft penalties instead of slashing.
