🔦Slashing Penalties

The slashing mechanism remains critical to maintaining the integrity of the Krown Blockchain. Validators who misbehave or fail to uphold their responsibilities will be penalized by losing part of their staked KROWN tokens.

1. Reasons for Slashing:

• Double Signing: A validator signs multiple competing blocks, trying to compromise the

  network’s integrity.

• Inactivity: A validator fails to be available when needed to validate blocks.

• Malicious Behavior: Any action that undermines the network’s security, such as approving

  invalid transactions.

1. Penalty Mechanism:

• Slashing results in the automatic loss of a portion of the validator’s staked tokens. The

  percentage slashed depends on the severity of the offense, but can range from a small

  percentage for minor offenses (e.g., inactivity) to a substantial portion for more serious

  violations (e.g., double-signing or malicious behavior).

• This ensures that validators have an economic incentive to act in the best interest of the

  network, as their staked tokens are at risk.

1. Deterring Malicious Actors:

• Validators understand that acting dishonestly will result in significant financial penalties.

  This system ensures that all participants are incentivized to follow the rules and act in good

  faith, helping to maintain the integrity and security of the blockchain.