Obol proposed EIP-7716 for inclusion in the Hégota hardfork. The proposal introduces a temporary increase in penalties for validator liveness failures during large-scale outages. The penalty aims to discourage centralized validator setups and reduce the risk of severe mass slashing events. The penalty increase is brief and adjustable, and validators affected by coordinated outages could lose a few weeks of rewards. Decentralized staking setups would see lower inactivity penalties, while large centralized operators would face slightly higher ones.

Originally authored by Dapplion, Toni Wahrstätter, and Vitalik Buterin, EIP-7716 scales attestation penalties based on in-slot correlation of missed attestations, creating "diseconomies of scale" for validators sharing the same node, cloud provider, ISP, or client. The change targets a long-standing imbalance where a solo staker who goes offline during a major outage incurs the same per-slot penalty as a large operator running thousands of validators from correlated infrastructure.

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