EigenLayer Introduces Redistribution Mechanism: New Way to Manage Penalties

EigenLayer is set to launch a groundbreaking redistribution mechanism, according to Odaily. The Active Verification Service (AVS) will now have the ability to repurpose penalized funds instead of destroying them, paving the way for verifiable services. This optional upgrade aims to create a more flexible and powerful penalty system that fosters improved incentive structures for all involved parties.