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EigenLayer introduces slashing for Ethereum restakers in April

EigenLayer introduces slashing for Ethereum restakers in April

GrafaGrafa2025/04/04 06:30
By:Liezl Gambe

EigenLayer (CRYPTO:EIGEN), the Ethereum-based (CRYPTO:ETH) restaking protocol, is set to implement slashing for restakers starting April 17, marking a major milestone in its development.

This introduces a security mechanism designed to penalise node operators and restakers for poor performance or malicious behavior, enhancing the protocol’s reliability.

The slashing mechanism will be gradually rolled out, with users able to voluntarily opt into it.

EigenLayer explained that if operators fail to meet performance conditions, they may be penalised by the Actively Validated Services (AVS), whereas successful operators can receive rewards.

Launched in 2023, EigenLayer allows Ethereum stakers to reuse their staked Ether (ETH) as collateral to secure third-party protocols like AVSs, expanding Ethereum's security without requiring separate validator networks.

The addition of slashing aims to bolster security and incentivise reliable service.

With over 30 AVSs live and more under development, EigenLayer is growing in the crypto ecosystem.

These services include EigenDA, a data availability service, and ARPA Network, which offers trustless randomisation.

The protocol also launched its native token, EIGEN, in October 2024, to further secure consensus-based systems.

Despite its advancements, some critics, including Ethereum co-founder Vitalik Buterin, have raised concerns about the potential risks of restaking, particularly its impact on Ethereum’s security principles and the potential for centralisation.

Others worry that yield-driven behavior might compromise network integrity.

EigenLayer's founder, Sreeram Kannan, emphasised the protocol's initial focus on onboarding crypto-native applications like decentralised finance (DeFi) and gaming, with plans to eventually target broader consumer markets.

At the time of reporting, the Eigenlayer (EIGEN) price was $0.8237, and the Ethereum (ETH) price was $1,800.25.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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