Slashing
The penalty in Proof of Stake where a misbehaving validator's staked collateral is partially destroyed.
Slashing is the enforcement mechanism of Proof of Stake: validators that misbehave — double-signing blocks, or in some designs extended downtime — have a portion of their staked collateral destroyed by the protocol. It’s what gives PoS its security: honesty is rewarded with yield, cheating is punished by burning real capital.
Slashing risk is why staking is not risk-free even on a sound network — validator errors, buggy setups, or malicious operators can cost stakers part of their principal. It’s especially relevant for delegated and liquid staking, where you inherit your chosen operator’s slashing exposure. The penalty’s existence is precisely what makes staked capital a credible security bond rather than a free-yield gift.