Validator Deposits

Definition ∞ Validator deposits are the amounts of cryptocurrency locked by participants who wish to operate as validators in a Proof of Stake (PoS) blockchain network. These deposits serve as collateral, ensuring validators act honestly and adhere to network rules. A validator’s deposit can be partially or fully slashed if they engage in malicious behavior or fail to perform their duties. These funds are essential for securing the network.
Context ∞ Crypto news often references validator deposits when discussing the security, decentralization, and economic health of PoS networks. Reports might detail the total value of deposits, the number of active validators, or changes in deposit requirements. Understanding validator deposits provides crucial context for comprehending how PoS systems maintain integrity and incentivize honest participation. These deposits are a fundamental component of the network’s consensus mechanism.