On May 9, according to an official announcement, EigenLayer will soon launch the "Redistribution" function, bringing new capabilities to its Slashing (punishment mechanism) upgrade. This feature allows the decentralized verification service (AVS) to reallocate funds after they are penalized rather than destroy them directly, supporting more complex use cases such as lending and insurance agreements. The Redistribution function is optional and is the first batch to support non-ETH assets (such as LSTs, EIGEN, USDC and AVS tokens). ETH is not yet included in the support scope. The feature has been launched on the Holesky, Sepolia and Hoodi test networks, and is scheduled to go online on the main network in June.