Definition
Slashing is a penalty mechanism in proof-of-stake and related blockchain systems that financially punishes validators or stakers for defined forms of misbehavior or failure. It typically involves automatically reducing a participant’s staked assets or rewards when protocol rules are violated, serving as an on-chain enforcement tool to maintain protocol integrity, security, and correct participation in consensus.
In Simple Terms
Slashing is a built-in punishment in some blockchains that takes away part of a person’s staked crypto when their validator breaks the rules or fails in certain ways. It is a rule-based financial penalty designed to keep participants honest and aligned with the network’s requirements.
Context and Usage
The term slashing is most often used in discussions about proof-of-stake consensus, validator responsibilities, and economic security models. It appears in protocol specifications, staking agreements, and documentation for validator operators and staking service providers. In newer designs such as restaking systems, slashing is also central to how additional services or networks enforce correct behavior using the same underlying staked capital.