Slashing

Slashing penalizes a validator for misbehaving. Slashing removes a percentage of the validator’s stake, rather than a fixed amount. Validators with higher stake will therefore receive higher penalties. Slashed KSM is added to the treasury to help fund the growth of the ecosystem. Nominators who support slashed validators also have their own stake proportionally removed.

Chilling removes a validator from the active validator set, and takes them out from the pool of eligible candidates in the next NPoS election cycle. Validators can do this themselves (when they know their services will be offline, for example) to eliminate the risk of slashing. This voluntary chilling lets them keep active in the current epoch, but not in the following. Chilling can also be used as a punishment to disable validators from taking part in consensus.