EigenLayer Launches Redistribution on Mainnet, Enhancing Slashing Functionality

Eigen Labs has rolled out its Redistribution feature on Mainnet, fundamentally upgrading EigenLayer's slashing mechanics. Slashed funds—previously burned—can now be repurposed for specific use cases, unlocking novel applications in decentralized finance.

The innovation enables protocols to redirect slashed capital toward protective measures like liquidation buffers or user reimbursements. Cap Protocol, an early adopter, leverages this mechanism to bolster financial guarantees for its stablecoin holders when institutional operators breach commitments.

This development marks a paradigm shift in slashing economics, transforming punitive measures into programmable capital allocation. DeFi protocols gain new tools to enhance systemic resilience while maintaining cryptographic enforcement.