If creating an SSN becomes permissionless according to Matt and

misbehaving SSNs face risk slashing, what are the risks for the delegators in this case?
What happens if you stake at the SSN that got slashed? Will you lose your coins?

Good question - I’ve taken a look at the whitepaper, and here’s what it says on page 19: "Slashing is applied to the validator and all accounts delegated to the validator, including those with a pending request to unstake." Pages 18 and 19 go into more detail, but I can’t say I fully get it. From what I understand, it seems like the rewards for both a misbehaving validator and those staking with it are reduced. It’s a bit unclear, though, whether the actual staked amount is also slashed - at least to me. I’ll see if I can get a clearer explanation though. Edit: There's a sentence mentioning a 'seize of a fraction of the staked amount': "The slashing contract also calls the staking contract to seize the slashed fraction of the validator's stake, deduct the slashing reward and transfer it to the sender of the slashing transaction who is the block proposer in the common case."

In short words slashing exists in eth sol and many other pos chains, its natural punishment for misbehaviour

Does that mean that Atomic delegators might get slashed (69k of them) and their delegated zils lost as well? 620 mil of zil. Atomic might be offline for days.

I asked Chat GPT to explain how the validator penalties (suspension and slashing) work in Zilliqa 2.0. In Zilliqa 2.0, a validator can face two types of penalties: punishment (suspension) and slashing. Here's the difference between the two: 1. Punishment (Suspension): A validator gets punished when they impair the liveness of the network. This happens when a validator fails to perform their duties, such as not proposing blocks when they are the designated leader. The system tracks how often a validator misses their turn to propose a block. If they repeatedly fail, they get suspended for a certain number of blocks. During suspension: The validator is not allowed to propose new blocks, meaning they lose out on proposer rewards. However, they can still participate in the consensus process by voting on block proposals. Validators do not get punished for a single missed block. The system only penalizes repeated failures, and suspension depends on how many views (rounds) they missed. Validators with a larger stake can get suspended sooner if they underperform, which discourages staking centralization​. 2. Slashing: A validator gets slashed when they compromise the safety of the network. This usually involves malicious behavior, such as: Equivocating, which means proposing or voting for multiple conflicting blocks in the same view (round). Any action that threatens the integrity of the network’s consensus. When slashing happens: A portion of the validator's stake is confiscated. Delegators who have staked with the validator also lose a proportionate part of their stake. The slashed amount depends on the severity and the validator's total stake. Slashing is a more severe penalty than suspension because it involves an irreversible loss of funds for both the validator and their delegators​​. In summary, punishment results in a temporary suspension from block proposing for failing to meet responsibilities, while slashing is a harsher penalty for malicious actions that threaten the network's security. When a validator gets slashed in Zilliqa 2.0, it means they did something harmful to the network, like trying to cheat or breaking important rules. Here's what happens in simple terms: Validator loses money: Part of the validator’s staked ZIL (the amount they have locked up to secure the network) is taken away as a punishment. Delegators lose money too: If you've delegated your ZIL to that validator, you'll also lose a portion of your staked ZIL, because your funds are tied to theirs. Validator gets kicked out: The validator is removed from the group of active validators, so they can no longer propose or verify blocks. In short, both the validator and the people who trusted them with their ZIL lose some money, and the validator gets kicked out of their role for breaking the rules. The exact amount of ZIL that gets slashed when a validator is penalized depends on a few factors: Severity of the Violation: The more serious or repeated the violation, the higher the slashing amount. Validator's Stake: The larger a validator’s stake, the more ZIL they stand to lose. If a validator controls more than 10% of the total stake, they will lose an even larger portion of their stake when slashed. Other Validators Slashed: If multiple validators are slashed in the same period, the slashed amount for each one increases. The formula for slashing increases the penalty based on how many validators have been slashed recently. In simple terms, the more stake a validator holds, and if other validators have also been slashed, the higher the slashing percentage will be​.

that would be bullish to slash those