EigenLayer plans to start out “slashing” restakers on April 17, ensuing within the Ethereum restaking protocol’s “first feature-complete iteration,” it mentioned in an April 2 announcement.
Implementing slashing will mark EigenLayer’s last step towards establishing the protocol as “infrastructure for a brand new technology of verifiable apps and companies constructed on the Verifiable Cloud,” it mentioned in a put up on the X platform.
In 2024, EigenLayer began distributing rewards — together with emissions of its native EIGEN token — to incentivize restakers. Nonetheless, slashing has to date been restricted to EigenLayer’s testnets.
As soon as slashing is dwell, node operators and restakers will be capable to voluntarily “opt-in,” leading to a gradual transition for customers, EigenLayer mentioned in a weblog put up.
Slashing begins on EigenLayer’s mainnet quickly. Supply: EigenLayer
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Gradual roll-out
Launched in 2023, EigenLayer secures third-party protocols — dubbed actively validated companies (AVSs) — in opposition to a pool of “restaked” cryptocurrencies used as collateral.
Restaking includes taking a token that has already been staked — posted as collateral with a validator in change for rewards — and utilizing it to safe different protocols concurrently.
Slashing is the first technique for securing proof-of-stake protocols — together with Ethereum in addition to “restaking” protocols corresponding to EigenLayer — and includes penalizing a community’s node operators for poor efficiency or misbehavior.
“If Operators don’t meet the situations set, the AVS might penalize them. However, if the Operator runs the service efficiently, AVSs can reward the Operator’s efficiency and incentivize particular exercise,” EigenLayer mentioned in an April 3 weblog put up.
This “permits for a free market the place Operators can earn rewards for his or her work and AVSs can launch verifiable companies,” the put up mentioned.
EigenLayer’s whole worth locked (TVL) over time. Supply: DeFILlama
Rising ecosystem
Upward of 30 AVSs are already dwell on EigenLayer’s mainnet, and dozens extra are being developed.
They embrace EigenDA — run by EigenLayer developer Eigen Labs — and ARPA Community, a protocol specializing in trustless randomization.
In October, EigenLayer unlocked its native token, EIGEN. It’s designed as a extra versatile choice for securing consensus-based protocols than different proof-of-stake tokens, corresponding to Ether, in line with EigenLayer.
EigenLayer is prioritizing onboarding crypto-native apps in segments corresponding to decentralized finance (DeFi) and gaming earlier than increasing past Web3, founder Sreeram Kannan instructed Cointelegraph in October.
“We’re beginning with the inside-out strategy, specializing in high-throughput shopper apps like DeFi and gaming, however as soon as we develop a little bit larger and have vital mass, we’ll go outdoors and begin focusing on broader shopper markets,” Kannan mentioned.
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