EigenLayer will begin enforcing penalties for misbehavior, a process known as “slashing”, on April 17.
This update marks the final step toward a complete version of its Ethereum
$1,780.59
-based restaking protocol. In a post shared on April 2, the team said slashing is implemented to support a network of services built on what it refers to as a “Verifiable Cloud”.
Users will be able to join the slashing system by choice, which gives them time to adjust. Slashing has only been tested in limited environments and was not part of the main system.
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EigenLayer, launched in 2023, allows people to reuse already-staked tokens to secure other applications. This process is called restaking, which gives users the chance to earn more rewards by supporting multiple systems at once.
In a blog post from April 3, the team explained:
If Operators do not meet the conditions set, the Actively Validated Service (AVS) may penalize them. But, if the Operator runs the service successfully, AVSs can reward the Operator’s performance and incentivize specific activity.
AVSs are projects that use the platform’s restaked tokens as collateral. Over 30 AVSs are already active on EigenLayer, with more in development. Among them are EigenDA, created by Eigen Labs, and ARPA Network, which offers tools for random number generation.
Meanwhile, Starknet, an Ethereum-based Layer 2 network, recently announced plans to boost Bitcoin’s
$83,079.47
speed and reduce its fees. How? Read the full story.
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.
