PANews reported on June 6th that EigenLayer stated on X platform that the redistribution mechanism has been launched on the testnet, and AVS can now redirect penalized funds instead of destroying them, thereby supporting new use cases such as lending and insurance protocols. This feature has been running on the Holesky, Sepolia, and Hoodi testnets. The mainnet version is coming soon, expected to be launched on the mainnet by the end of June or in July.
EigenLayer: The redistribution mechanism has been launched on the test network and is expected to be launched on the main network at the end of June or July
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