TechFlow news, May 9 — According to an official announcement, EigenLayer is launching its "Redistribution" feature, introducing new capabilities for upgrades to its slashing mechanism. This feature allows Automated Validation Services (AVS) to redistribute slashed staked funds rather than burning them, enabling more complex use cases such as lending and insurance protocols.
The Redistribution feature is optional and initially supports non-ETH assets (such as LSTs, EIGEN, USDC, and AVS tokens); ETH is not currently supported. The feature has already gone live on the Holesky, Sepolia, and Hoodi testnets and is scheduled to launch on mainnet in June.
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