According to TechFlow news on May 9, in an official announcement, EigenLayer is about to launch the 'Redistribution' feature, bringing new capabilities to its Slashing mechanism upgrade. This feature allows Decentralized Verification Services (AVS) to reallocate funds after staked assets are penalized, instead of directly destroying them, thus supporting 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), with ETH not currently within the support range. This feature has been launched on the Holesky, Sepolia, and Hoodi testnets, and is planned to go live on the mainnet in June.
