What is slashing?

Slashing is a mechanism used in certain blockchain protocols, particularly those that use proof-of-stake (PoS) consensus algorithms, to penalize validators (also known as "stakers") who behave maliciously or fail to fulfill their duties.

In a Proof of Stake (PoS) blockchain, validators are responsible for validating transactions, creating new blocks, and maintaining the integrity of the network. In return, they receive rewards in the form of cryptocurrency, called staking rewards. However, if a validator behaves maliciously or fails to perform their duties, it can compromise the security and integrity of the network.

Slashing is a penalty imposed on validators who exhibit malicious behavior or fail to validate transactions, create blocks, or maintain the integrity of the network. The penalty can involve reducing the validator's stake, which is the amount of cryptocurrency they have locked up to participate in the validation process. This reduces the validator's ability to earn rewards and may eventually result in their exclusion from the validation process altogether

Slashing can be implemented in various ways, such as:

1. Double-sign slashing: This occurs when a validator attempts to validate two conflicting blocks or transactions simultaneously. This is a clear indication of malicious behavior, and the validator's stake may be slashed as a penalty.

2. Liveness slashing: This occurs when a validator fails to produce new blocks or validate transactions within a certain time frame. This can be a sign of a validator node that has gone offline or is malfunctioning, and the validator's stake may be slashed as a penalty.

3. Double-vote slashing: This occurs when a validator votes for two different validators to produce the next block. This is a clear indication of malicious behavior, and the validator's stake may be slashed as a penalty.

Slashing is an essential mechanism in PoS blockchain protocols, as it helps to maintain the integrity and security of the network. It incentivizes validators to behave honestly and perform their duties diligently, ensuring that the network functions correctly and transparently.

At Myrmidon Staking, we have managed to score a 99.99% uptime on our validators, meaning none of our validators have been slashed, providing our customers with the full amount of staking rewards they have been entitled too.