What are the risks of staking ETH and becoming a validator on Ethereum 2.0?
$Ethereum (ETH.CC)$
One of the benefits of your participation in Ethereum 2.0 as a validator is the ETH reward. However, if your ETH staked in the network is "slashed", you are at risk of losing your funds. With a little attention, this risk is negligible. The first situation where funds can be lost is when a validator is offline and unable to perform their duties properly. These penalties are relatively mild: roughly equal to the amount of rewards you can get for performing tasks. You will not lose your staked ETH as long as you are online for more than 50% of the time. Another situation where funds can be lost is when validators themselves publish conflicting blockchain information, in which case validators will be slashed and kicked out of the network. The amount of slashed funds ranges from 1 ETH to the total amount staked, depending on other factors. Slashing is easy to prevent, and should never happen unless the validator is malicious on purpose.
One of the benefits of your participation in Ethereum 2.0 as a validator is the ETH reward. However, if your ETH staked in the network is "slashed", you are at risk of losing your funds. With a little attention, this risk is negligible. The first situation where funds can be lost is when a validator is offline and unable to perform their duties properly. These penalties are relatively mild: roughly equal to the amount of rewards you can get for performing tasks. You will not lose your staked ETH as long as you are online for more than 50% of the time. Another situation where funds can be lost is when validators themselves publish conflicting blockchain information, in which case validators will be slashed and kicked out of the network. The amount of slashed funds ranges from 1 ETH to the total amount staked, depending on other factors. Slashing is easy to prevent, and should never happen unless the validator is malicious on purpose.
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