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Dr-Hack

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Registered: 2020-11-20

Posts: 70

ETH 2.0 Staking is not all profits if you screw up

ETHEREUMEthereum 2.0: Validator slashed as others face ‘inactivity penalties’

While much of the community is still elated after the beacon chain went live on 1 December, it would seem that something else entirely grabbed its attention today. With the amount of ETH staked on the deposit contract nearing almost a million and worth over $500M, the first ‘validator slashing’ took place today.

The validator in question was reportedly slashed for a block equivocation and lost approximately 0.25 ETH.

Slashing happens when a validator has provably acted against the Ethereum network, acted in a way that can confuse or disrupt the integrity of the system.

As such, the network removes or ‘slashes’ a portion of the offending validators’ existing stake, causing a gradual loss of ETH over time until the validator is forcefully ejected and marked as ‘slashed.’

Interestingly, some did expect the slashing penalty to be much higher. However, as developer Ben Edgington had pointed out in a previous ETH 2.0 blog, this minimal amount is merely temporary for genesis and will soon be hiked back to 1 ETH.

While slashing is a more serious consequence of improper ETH staking, more common events seem to be inactivity penalties imposed on validators that remain offline.

Complete Article : https://eng.ambcrypto.com/ethereum-vali … y-penalty/

Staking comes with a validation check which results in slashing and that can deduct your asset so always jump in if you know what you are doing