How does Blockdaemon ensure that your assets are covered/protected when a slashing event occurs?
Blockdaemon guarantees that missed returns as a result of slashing from any potential node malfunctions are 100% covered by Blockdaemon.
Slashing is a mechanism built into Proof of Stake (PoS) blockchain protocols to discourage validator misbehavior. While the specifics of slashing are defined within each protocol, the mechanism is similar where a predefined percentage of a validator’s tokens are lost when it does not behave consistently or as expected on the network.
When this occurs, Blockdaemon has a claims process where it will work with the insurance carrier to determine the cause and amount of loss in a quick, streamlined fashion. Users will then get reimbursed in their account for the amount of loss they incurred during the slashing event.
Blockdaemon partnered with Marsh, the world’s leading insurance broker and risk advisor, to obtain this policy. You can read more about this partnership here.