Ethereum Staking Penalties
Definition: Ethereum Staking Penalties are the consequences that validators on the Ethereum Proof of Stake (PoS) network face for actions that negatively affect the network's integrity and security. These penalties are designed to discourage malicious or negligent behavior and ensure the stability of the blockchain. Penalties can range from minor reductions in staking rewards for being offline (inactivity leaks) to significant portions of the staked ETH being slashed for serious offenses like double signing or similar attacks.
Category: Staking
Example: If a validator acts maliciously or negligently, such as by being offline frequently or attempting to validate conflicting transactions (equivocation), they can lose a portion of their staked ETH as a penalty. In severe cases, such as participating in a coordinated attack on the network, a validator could be slashed, meaning a significant amount of their staked ETH is burnt and they are removed from the validator set.
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