Blockchain
Slashing
A penalty mechanism in Proof-of-Stake blockchains where validators lose a portion of their staked tokens for malicious behavior or failing to properly validate transactions.
Last updated: January 5, 2025
What is Slashing?
Slashing is a penalty mechanism in Proof-of-Stake (PoS) blockchains that punishes validators for bad behavior by destroying (slashing) a portion of their staked tokens. It’s designed to make attacking the network economically irrational.
Why Slashing Exists
Network Security
- Discourages malicious behavior
- Makes attacks financially costly
- Ensures validator accountability
Maintaining Integrity
- Prevents double-signing blocks
- Punishes prolonged downtime
- Enforces protocol rules
Slashable Offenses
Double Signing
- Signing two different blocks at same height
- Most severe offense
- Often results in full stake loss
Downtime
- Validator offline too long
- Misses too many blocks
- Usually smaller penalty
Equivocation
- Sending contradictory messages
- Attempting to fork the chain
- Severe penalty
Slashing Penalties by Network
| Network | Double Sign | Downtime | Notes |
|---|---|---|---|
| Ethereum | ~1 ETH minimum | Small | Can be much higher |
| Cosmos | 5% stake | 0.01% stake | Varies by chain |
| Polkadot | 100% possible | Variable | Depends on severity |
| Solana | N/A | Reduced rewards | Different model |
Ethereum Slashing Example
Attestation Slashing
- Offense: Double voting
- Minimum penalty: 1/32 of stake
- Additional: Correlation penalty
- Exit: Forced removal from validator set
Proposer Slashing
- Offense: Double block proposal
- Penalty: 1 ETH minimum
- Risk: Higher if many validators slash simultaneously
Protecting Against Slashing
For Validators
- Use reliable hardware - Prevent downtime
- Avoid duplicate setups - Never run same keys on multiple machines
- Monitor constantly - Catch issues early
- Use slashing protection - Database to prevent double signing
- Maintain backups - But never run simultaneously
For Delegators
- Research validators - Check track record
- Diversify - Don’t stake all with one validator
- Monitor performance - Watch for downtime
- Understand risks - Your stake can be slashed too
Slashing vs Jailing
| Action | Slashing | Jailing |
|---|---|---|
| Token loss | Yes | No |
| Validator status | Removed | Temporarily suspended |
| Severity | High | Medium |
| Recovery | Usually not possible | Can rejoin |
Impact on Stakers
When you delegate to a validator that gets slashed:
- A portion of your staked tokens is lost
- Rewards stop during downtime
- May need to redelegate
Stake safely through reputable exchanges like Coinbase and Kraken that operate professional validators.
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