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How do AVS slashing dynamics compare to standard Ethereum staking?
Standard Ethereum staking slashing is limited and well-defined—primarily penalizing double-signing and long-term inactivity. Slashes are rare, small (1–2 ETH), and designed to protect protocol safety without excessive validator churn. In contrast, AVS slashing introduces service-specific slashing logic, which varies across execution, data availability, oracles, and more. Some AVSs can impose heavier or more frequent penalties depending on performance expectations. Unlike Ethereum’s consensus-layer safety focus, AVS slashing can be tied to application-layer guarantees. Thus, AVS slashing is less standardized, often riskier, and demands more from validator ops and governance oversight, especially in restaking environments.