Slashing

• If a validator does not produce blocks, it will be slashed and its missing block counter increased by one.

• If a validator misses a block, another validator can slash them. They will not receive rewards for the missed block.

• If a validator misses blocks for misdemeanor threshold times, then this validator lose the reward for the entire epoch. The default value of misdemeanor threshold is 50.

• If a validator misses blocks for felony threshold times, then this validator goes to jail and will not be able to produce rewards for the jail period (usually around 1 week). The default value of the felony threshold is 150.

Hence, a jailed validator loses either all their rewards for 1 week or 25% of monthly rewards. Once the jail epoch period has ended for a jailed validator and they have been released from jail, they can re-start to produce new blocks. Releasing from jail is a very important mechanism to eliminate problems with corrupted or underperforming validators that do not produce new blocks at all. In essence, it is just a confirmation from the validator's owner that the validator has recovered and is ready to continue working.