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What is Slashing?

Crypto Terms Glossary: What is Slashing?

Slashing is a process typically employed automatically by blockchain protocols that make use of a Proof-of-Stake (PoS) or related consensus mechanism. If an investor deposits or stakes their crypto assets inside a main network validator node and the node behaves in a dishonest or malicious manner, the crypto depositor can be penalized, resulting in a loss of a portion of the initial investment.

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