Blockdaemon Rolls Out Industry-First Staking Slashing Insurance Coverage
Today Blockdaemon, the world’s largest blockchain infrastructure company for node management and staking, announced an innovative, industry-first insurance policy to protect its customers—including Fortune 500 enterprises, banks, custodians and trusts—from the downside of blockchain staking slashing events. Blockdaemon worked with Marsh, the world’s leading insurance broker and risk advisor, to obtain this policy.
“This new insurance policy is first of its kind and is designed to give Blockdaemon customers comfort that there is financial backing for a system failure or security failure that impacts them,” said Konstantin Richter, CEO and Founder, Blockdaemon. “Already our experience running nodes on every major network has led us to develop market-leading, enterprise-standard risk mitigation, and this is one more assurance to our customers that trust us with their blockchain needs.”
Slashing is a mechanism built into proof-of-stake blockchain protocols to combat validator misbehavior and promote node security, availability, and network participation. If a validator shows harmful behavior, a percentage of their bonded/staked tokens will get slashed, or lost.
The new insurance policy protects Blockdaemon customers if Blockdaemon experiences a system failure or security failure that causes:
- A slashing event, where contractual penalties are imposed or seized by a blockchain network because of a protocol violation based on the availability of Blockdaemon’s services; or
- A double-signing event, where the validation of two or more different blocks at the same section of a particular blockchain network results in liability.
As part of the offering, Blockdaemon has designed a claims process where it will work with the insurance carrier to determine the cause and amount of loss in a quick, streamlined fashion.