Proof-of-stake systems need consequences for behavior that threatens consensus. Penalties can range from small balance reductions for missed duties to severe slashing for conflicting signatures.
What you'll understand
- A validator that is offline may miss attestations or other duties.
- Slashing generally refers to a stronger penalty for specific protocol violations, such as signing conflicting messages.
- Slashing can be caused by malicious behavior, but it can also result from configuration errors such as running the same validator keys on multiple active machines.
- When a third party operates validators, users may depend on that provider's infrastructure and policies for handling penalties.
Ordinary penalties
A validator that is offline may miss attestations or other duties. Many protocols reduce the validator's balance or expected rewards in response.
The exact rules vary by network and can change through upgrades.
Slashing
Slashing generally refers to a stronger penalty for specific protocol violations, such as signing conflicting messages. Its purpose is to make attacks economically costly.
Slashing conditions are precisely defined by each protocol.
Operational causes
Slashing can be caused by malicious behavior, but it can also result from configuration errors such as running the same validator keys on multiple active machines.
Key-management procedures therefore matter.
Why this matters for staking services
When a third party operates validators, users may depend on that provider's infrastructure and policies for handling penalties. This is one reason third-party staking products should not be confused with the base protocol itself.
The clearest way to understand this topic is to separate the protocol, the digital asset, the software interface and any third-party service. Each layer has different responsibilities, dependencies and risks.
