Redistribution is Live on Testnet
AI summary of the linked articleEigen Labs has announced that the Redistribution feature is now live on the Holesky, Sepolia, and Hoodi testnets, letting AVSs repurpose and distribute slashed funds instead of burning them. The company says this expands slashing on EigenLayer to use cases such as lending and insurance, including compensating harmed parties or rewarding reliable Operators. Redistribution is opt-in for AVSs and Operators, and non-ETH assets such as LSTs, EIGEN, and USDC are eligible in this release, while native ETH is not yet. Mainnet availability is expected in late June or July. |
1 comment  rvolz.ethSubmitter This upgrade aims to expand the design space for AVSs beyond punishing bad actors (slash & burn) and provide a means to strategically redirect slashed funds for their use case, which could include compensating harmed parties or rewarding reliable Operators. |