Slashing and Penalties
To maintain network integrity, validators face penalties for malicious or negligent behavior:
Slashing Conditions:
Double signing: Validator signs two conflicting blocks (5-10% stake slashed)
Extended downtime: More than 48 hours offline without notice (1-3% stake slashed)
Invalid transactions: Attempting to validate fraudulent transactions (10-20% stake slashed)
Coordination attacks: Participating in 51% attacks (100% stake slashed + permanent ban)
Grace Periods:
First-time minor infractions: Warning with 24-hour grace period
Scheduled maintenance: Validators can announce downtime to avoid penalties
Network-wide issues: No slashing during verified network outages
Slashed Fund Distribution:
50% burned (removed from circulation)
50% distributed to honest validators as bonus rewards
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