Glossary
Slashing
A protocol penalty that destroys part of a validator's staked assets for misbehaviour or downtime.
Slashing is a real economic loss, not a valuation movement, and where a validator stakes assets belonging to others it may also be a liability to those delegators depending on the terms offered.
Because it is conditional and infrequent, it is often not modelled at all until it happens — at which point the question of who bears it is answered by whatever the delegation agreement happens to say.
Where this comes up
See also
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