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Crypto & DeFi

Slashing

Slashing is a penalty mechanism in proof-of-stake blockchains where validators lose a portion of their staked tokens for malicious behavior or severe negligence. It's designed to economically punish bad actors and ensure network security and reliability.

Understanding the Concept

• Triggered by double-signing, extended downtime, or invalid attestations • Penalty severity varies: minor for downtime, severe for malicious acts • Slashed tokens are typically burned or redistributed • Creates strong economic incentives for honest validator behavior

Real-World Example

An Ethereum validator goes offline for 10 days due to server issues. They receive a small slashing penalty (around 0.1 ETH) for missed attestations. A different validator attempts to finalize two conflicting blocks (a slashable offense), losing 1+ ETH immediately plus correlation penalties if others slash simultaneously.

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