What is Staking and Staking Economy?
Staking was born out of the POS (Proof of Stake) consensus mechanism. It is a unique action in the PoS consensus. The cryptocurrency holder actively participates in the network system through staking, protects the network security and also implements the rights related to the cryptocurrency.
As staking has become a new trend in the crypto industry, it’s important to mention the risks associated with cryptocurrency staking.
1. Slashing risk
When your validators break the rule, they will get punished by the network, which is also known as slashing.
Slashing can happen in several cases, such as when liveness fault, security fault, or governance fault happens.