EigenLayer Announces Redistribution Feature

On May 9th, according to an official announcement, EigenLayer is about to launch the "Redistribution" function, bringing new capabilities to its Slashing (penalty mechanism) upgrade. This feature allows decentralized verification services (AVS) to reallocate funds after the pledged funds are punished, rather than directly destroying them, thus supporting more complex use cases such as lending and insurance agreements.
The Redistribution feature is optional and will initially support non-ETH assets (such as LSTs, EIGEN, USDC, and AVS tokens). ETH is not yet supported. The feature has been launched on the Holesky, Sepolia, and Hoodi testnets and is scheduled to go live on the mainnet in June.