Staking BAND carries the risk of token slashing of both independent validator and externally delegated balances in the event of malicious activity or downtime. These penalties ensure full accountability of validators to secure the oracle network and maintain high-quality control standards.
Currently, there are 2 main conditions where tokens are slashed:
- Double Signing (5%): This occurs when a validator signs two blocks at the same height on Chain A & Chain B. There will be a severe 5% penalty imposed on the validator and underlying delegated BAND tokens.
- Downtime (.01%): This occurs if validators have not been available in the last 30000 blocks. If slashed, validators are ‘jailed’ and unable to participate in signing any further blocks until a transaction is sent to BandChain to prove they are online and operational. We will slowly increase this penalty as our validator pool becomes more stable over time.
For this reason, we strongly encourage all delegators to perform due diligence before choosing a validator
Band Protocol is also not responsible or liable for the risks or security flaws of third party wallet partners. Please conduct your due diligence before using applications and transferring funds.
