Stake Penalties

Definition ∞ Stake penalties, often termed slashing, are mechanisms within proof-of-stake blockchains that penalize validators for misbehavior or network non-compliance. Such penalties typically involve the forfeiture of a portion of the validator’s staked assets. These measures are designed to incentivize honest participation and secure the network.
Context ∞ News regarding stake penalties often arises in the context of proof-of-stake network security and validator conduct. Reports may detail instances where validators were penalized for prolonged downtime or attempts to validate fraudulent transactions. Understanding stake penalties is important for assessing the economic incentives and security assurances of delegated proof-of-stake and similar consensus models.