Introducing: Slashing
We are excited to introduce Slashing, a proposed protocol upgrade detailed in ELIP-002: Slashing, and the next significant step in the evolution of the EigenLayer protocol. This powerful upgrade introduces slashing, a critical tool for AVSs to enforce cryptoeconomic commitments.
This proposed upgrade is the second EigenLayer Improvement Proposal (ELIP) using the EigenLayer Governance process (EigenGov) recently announced by the Eigen Foundation.
Join in the discussion of ELIP-002: Slashing on the EigenLayer forum!
As of December, 19, 2024, Slashing is live on Holesky Testnet.
What
The proposed slashing upgrade introduces two novel features that bolster security and accountability in the EigenLayer ecosystem:
- Unique Stake Allocation
Operators can allocate specific portions of their staked security as “Unique Stake,” ensuring that only one AVS has the ability to slash that stake. This isolates slashing risks and strengthens security guarantees for AVSs without exposing Operators to unnecessary risks from unrelated tasks. - Operator Sets
A new core protocol primitive that gives AVSs the tools to organize Operators into distinct groups, where the AVS may define slashing conditions, assign tasks, and manage slashable security with precision. Operators must opt-in to these sets specifically, considering the AVS designs and rewards in alignment with their risk tolerance and competencies.
Together, these features allow for the introduction of slashing mechanisms that penalize Operators for faults, such as incorrect computation or liveness failures, while maintaining flexibility for AVSs to reward performance and incentivize specific activity.
When
- Testnet Launch: Slashing will deploy on Holesky testnet on December 19th
- Mainnet Launch: Mainnet deployment proposed in late Q1 2025
Dates are subject to change.
Why
The proposed slashing upgrade unlocks new possibilities for the EigenLayer ecosystem:
- Enhanced Credible Commitments
AVSs can now create cryptoeconomic commitments to their users with deterrent penalties for non-performance. - Greater Operator Flexibility
Operators can allocate and manage their staked security in alignment with their risk appetite and technical competencies. Unique Stake ensures that slashing risks are isolated, empowering Operators to confidently participate in multiple AVSs. - Driving AVS Innovation
Slashing enables AVSs to pioneer new classes of trustless on-chain services, such as decentralized computation and secure data attestation, by offering cryptoeconomic guarantees to their end users. - Transparency for Stakers
Stakers can now assess the slashing risks associated with their delegated Operators, gaining insight into AVS commitments, Operator performance, and potential rewards. This transparency empowers informed price discovery, decision-making, and fosters alignment across participants as Staker-provided security is used in Operator Sets. - Sustainability Through Accountability
By tying rewards and slashing risks to performance, the upgrade incentivizes a balanced ecosystem where honest behavior is incentivized, and dishonesty is deterred.
How It Works
Unique Stake Allocation
Operators allocate specific proportions of their delegated stake to Operator Sets created by AVSs as “Unique Stake.” Unique Stake guarantees that an Operator’s specific slashable stake can be allocated only to one AVS at a particular time, minimizing systemic risk. Operators maintain full control over how much stake to allocate and to which AVS, balancing risk and reward.
Operator Sets
AVSs define Operator Sets to segment tasks, security, and slashable conditions. Each set allows AVSs to customize the security composition and reward mechanisms for specific tasks. Operators can opt-in and register for these sets, allocate their stake, and take on slashing risks in exchange for targeted rewards.
Slashing Mechanism
AVSs gain the ability to slash Operators’ Unique Stake. This ensures AVSs can enforce cryptoeconomic commitments by slashing stake without affecting the Unique Stake of other AVSs or Operators. AVSs can design robust systems around slashings, like governance, fraud proofs, or other management mechanisms that work for their protocols and communities. Slashing events are transparent, with detailed records available on-chain for verification.
Impact
- For AVSs
Unlocks the ability to design innovative services with cryptoeconomic guarantees enforced by slashing, driving user trust and adoption. - For Operators
Provides control over slashing risks, enabling broader participation in securing multiple AVSs while managing exposure. - For Stakers
Enhances transparency and trust by surfacing slashing risks and histories, helping stakers make informed delegation decisions when choosing Operators.
Testnet
While we’re live during this testnet phase, initiating new withdrawals and new checkpoints will be temporarily paused (you can still do so via the CLI). Additionally, there may be temporary inaccuracies in displayed data as we calibrate updates and monitor system performance. Updates and fixes will begin on Jan 2. We appreciate your patience and understanding as we roll out this critical upgrade.
One additional note: The new Operator Set-directed rewards mechanisms mentioned in the ELIP will not be available at testnet launch. These will follow shortly after to testnet in the new year.
For Holesky Testnet Application Users (holesky.eigenlayer.xyz): On December 19, some functionality on the Holesky testnet application will be temporarily paused following Slashing deployment on testnet as we migrate and begin indexing the new contracts. Deposits will continue to process, but you may notice delays in balance updates, delegation changes, and status visibility in the testnet UI. Once the migration is complete, we’ll begin testing the slashing and rewards mechanisms.
Looking Ahead
This upgrade represents a critical milestone in EigenLayer’s journey to build a scalable, secure, and decentralized infrastructure for trustless applications. By introducing slashing, we are beginning a new era of accountability, innovation, and growth in the EigenLayer ecosystem.
This upgrade marks a major step forward in creating an ecosystem where participants can innovate confidently, knowing their commitments are backed by robust, enforceable security. Get started on Holesky testnet today and prepare for the mainnet launch to be part of this transformative shift!
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