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EigenLayer

Redistribution is Live on Testnet

IT Admin

• 2 min read

Redistribution is Live on Testnet

Eigen Labs is pleased to announce the Redistribution feature is now available on Holesky, Sepolia, and Hoodi Testnets. 

AVSs will be able to repurpose and distribute slashed funds instead of burning them. This change expands the expressivity of slashing on EigenLayer, opening up new use cases—such as lending and insurance protocols—by enabling fund redistribution when commitments are broken or conditions change, like a liquidation or user reimbursement. 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. 

Here's how to start building with Redistribution, what's changing, and when you can expect it on mainnet.

Timing & Process

Testnet: June 5th - Redistribution is live now on Holesky, Sepolia, and Hoodi Testnets.

Mainnet: Late June or July - Redistribution will be live on mainnet for AVSs to begin using.

How to Get Started

AVSs can begin creating Redistributing OperatorSets on testnet to test the new slashing and the redistribution features. These new types of Operator Sets look and act largely the same as those that were released earlier this year.  The slashing flow is modified to use the Redistributing Operator Set’s new field, the redistribution recipient.

Important: AVSs will not be automatically opted into using redistribution on testnet or mainnet. 

To learn more and get started now, check out the EigenLayer docs.

Key Reminders:

  • Fully opt-in for AVSs and Operators: Like all slashing condition features, redistribution is opt-in only for AVSs and Operators. AVSs must create new Operator Sets to enable redistribution, then Operators choose whether to allocate to the Operator Set and accept its rules and slashing conditions. Stakers can decide to delegate to Operators allocated to redistributable Operator Sets, but the Operators make the choice of which AVSs to run.
  • Asset compatibility: All non-ETH assets, like LSTs, EIGEN, USDC, and AVS tokens, are eligible for redistribution in this release. Native ETH is not yet eligible for redistribution.
  • Operator Sets must be redistributable at its creation: As a result, the protocol can make guarantees to Stakers and Operators over the lifetime of an Operator Set. A standard Operator Set cannot suddenly become redistributable and a redistributable Operator Set cannot have that property removed. 

Mainnet is Coming Soon

Eigen Labs continues to rapidly deliver key feature sets that make our users more successful. With the core protocol now feature-complete, we’ve entered a new phase: expanding what's possible when services can make and keep verifiable commitments. The team will continue to deliver code, templates, and standards for launching services across chains. 

Look out for updates over the coming weeks when AVSs can begin building OperatorSets with Redistribution enabled on mainnet. 

Resources & How to Get Involved

We value the community’s input on protocol updates and proposals. Please review the following resources and provide feedback on the ELIP.

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