Slashing
A penalty that destroys part of a validator's staked coins for misbehavior or downtime.
Slashing is how proof-of-stake networks punish bad validators. Sign two conflicting blocks or try to cheat finality, and the protocol burns a chunk of your stake automatically. On Ethereum, a slashed validator loses funds and gets ejected from the active set.
The threat keeps validators honest without a central enforcer. It also raises the stakes for running a node: a misconfigured setup that double-signs can cost real money. Staking services and slashing insurance exist partly to manage that risk.
Related terms
A consensus method where validators lock up coins as collateral instead of burning electricity to secure the chain.
ValidatorA participant in a proof-of-stake network that proposes and confirms blocks, putting staked coins at risk for honesty.
StakingLocking up tokens to help secure a proof-of-stake network and earn rewards, similar to interest on a deposit.