Slashing

Slashing is a security measure in the XYO Layer One blockchain that holds node operators accountable. Through slashing, bad actors are penalized financially, for example by losing their staked $XYO. Ultimately, slashing discourages bad actions to preserve the integrity of the network.

Purpose

Slashing exists to prevent bad actors from doing negative actions on-chain. If a node submits invalid data, approves bad blocks, or interferes with the chain, it can harm other users' interactions and lower the trust in the blockchain.

Conditions for Slashing

Node Stakers (Block Producers and Validators) put their $XYO tokens at risk when joining consensus. A stake may be slashed if a node:

• Produces or approves an invalid block

• Submits false or poor-quality data

• Performs actions that break consensus rules

System Stakers, who contribute through the pooled staking option, do not face slashing risk because they do not have nodes that can commit bad actions and threaten the network.