EigenLayer announces redistribution feature

On May 9th, according to an official announcement, EigenLayer is about to launch the "Redistribution" feature, bringing new capabilities to its Slashing upgrade. This feature allows decentralized validation services (AVS) to redistribute funds after being penalized, rather than directly destroying them, thus supporting more complex use cases such as lending and insurance protocols. Redistribution is optional and initially supports non-ETH assets (such as LSTs, EIGEN, USDC, and AVS tokens), with ETH not yet included in the supported range. This feature has already been launched on the Holesky, Sepolia, and Hoodi testnets, with plans to go live on the mainnet in June.