EigenLayer: Redistribution Mechanism Launched on Testnet, Expected to Launch on Mainnet by Late June or July

EigenLayer posted on X stating that the reallocation mechanism is now live on the testnet, allowing AVS to redirect penalized funds instead of burning them, thereby supporting new use cases such as lending and insurance protocols.

This feature is running on the Holesky, Sepolia, and Hoodi testnets. The mainnet version is coming soon and is expected to go live on the mainnet by the end of June or in July.