Definition ∞ Minimal penalty refers to the lowest possible economic disincentive or fine imposed on a participant in a blockchain network for violating protocol rules. This mechanism aims to deter dishonest behavior without overly punishing minor infractions or accidental errors. It helps maintain network security and participant accountability.
Context ∞ In proof-of-stake systems, designing effective minimal penalty structures is a critical aspect of cryptoeconomic security. Debates often concern the balance between deterring malicious actions and avoiding excessive slashing for unintentional faults. The calibration of minimal penalties directly influences validator participation and the overall stability of the network.
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