What is slashing?
A penalty that destroys part of a validator’s staked assets for misbehaviour or prolonged downtime.
Proof-of-stake networks require validators to post collateral. Slashing removes some of it when a validator double-signs, goes offline for an extended period, or otherwise violates the protocol’s rules.
Why it matters
Slashing is the risk that published staking yields almost never mention. If you stake through a provider, their operational failure can cost you principal, not merely forgone rewards — and how losses are shared is a matter of that provider’s terms, not the protocol’s. Networks differ enormously: on some, delegation carries no slashing exposure at all, while on others it does. Any advertised APR that does not sit beside a statement of slashing exposure and lock-up terms is an incomplete number.