Ethereum and EigenLayer Upgrade: Redistribution of Seized Funds
Ethereum is planning to implement an upgrade for the EigenLayer protocol. In June, the mainnet will integrate the feature "redistribution of seized funds". This is an advanced function of the Slashing mechanism. Instead of destroying funds, the Active Verification Service (AVS) will allocate them to designated parties. The initial round will support LST Tokens, EIGEN, USDC, and AVS (ETH is not included).
Testing and Security
The test network is expected to launch on Holesky in May. This is an optional feature; AVS can design an incentive structure to "penalize invalid nodes, reward reliable nodes". To achieve this, advanced key management and smart contract security are needed with a multi-signature architecture or a slashing mechanism with veto power.
Balancing Risk and Reward
The protocol emphasizes that AVS designs reasonable distribution rules to avoid distorting incentives. This may include fixed slashing conditions to balance risk and reward. The redistribution mechanism opens up new experiments for liquidity-demanding situations such as lending, insurance, user compensation, or hindering liquidation.
Recommendation
This information is intended to provide market information, not investment advice.
Source: https://tintucbitcoin.com/eigenlayer-trien-khai-nang-cap-mainnet-thang-6/
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