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Solana staking may become riskier as Anza proposes slashing

Solana developer shop Anza has proposed implementing slashing in the network. Slashing is a method used to keep validators honest in proof-of-stake blockchains by punishing those who slow down the network. Currently, Solana does not have a way to punish validators for improper actions. The proposed slashing program would initially focus on slashing validators for duplicate blocks. The specifics of the slashing economics are yet to be determined but burning the slashed stake has been suggested. Anza's proposal has received early approval from Solana's technical community. Implementing slashing would add a risk for Solana stakers, as their rewards could decrease if their validator's stake is burned. This risk also extends to restaking protocols. Ethereum has had rare instances of slashing incidents, with less than 0.04% of active validators being slashed. The slashing proposal for Solana is still in its early stages and would be rolled out in late summer 2025 at the earliest.

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