How do the penalties for validators work?

SKALE is working with the best validator community - all validators are experienced and have a good reputation in multiple networks.

But of course there is a slashing condition that we will be enabling once SKALE onboards dApps.

When slashing is enabled and a validator double signs or exhibits malicious behavior, their tokens as well as tokens delegated to said validator will be slashed.

Before slashing, tokens will be placed in escrow contract and there will be done an analysis of whether the validator indeed attempted to act maliciously or if it’s a code issue.

If there is no malicious behavior found by the community reps, delegations will be refunded. But if the validator is malicious then delegators will be penalized as well.