Description: Negative participation refers to a situation where a participant’s involvement is reduced due to malicious behavior or network sanctions. This concept is particularly relevant in proof-of-stake (PoS) systems, where participants, known as ‘validators’, are responsible for validating transactions and maintaining network security. In this context, negative participation acts as a deterrent mechanism to prevent dishonest or harmful behaviors. When a validator acts maliciously, such as attempting to validate fraudulent transactions or failing to meet their responsibilities, they may face penalties that result in a reduction of their participation or ‘stake’. This not only affects their ability to participate in future block validations but can also lead to the loss of a portion of their initial investment. Negative participation thus becomes a crucial element in maintaining the integrity and trust in the network, incentivizing validators to act ethically and responsibly. This penalty mechanism is fundamental to the functioning of PoS networks, as it ensures that participants have an interest aligned with the long-term health and success of the network.
