What to know:

• EigenLayer will introduce the long-awaited slashing feature on April 17, marking the protocol’s first fully functional version.
• Slashing allows Actively Validated Services (AVSs) to penalize operators who fail to meet certain conditions, enhancing security and accountability.
• The EigenLayer ecosystem has attracted over $15 billion and is developing more than 100 AVSs, despite intense competition from other platforms like Symbiotic.

When EigenLayer, one of the most anticipated Ethereum startups of the past year, launched last year, expectations were high; however, it quickly faced criticism for missing a crucial feature, notably slashing. This functionality has now been confirmed for release on April 17, as noted in an announcement from the project.

Slashing is integral to the concept of restaking, a method utilized by Ethereum users to secure additional protocols by recommitting their staked Ether. The introduction of slashing will empower AVSs built atop EigenLayer’s infrastructure to establish conditions that can penalize non-compliant operators and reward those who adhere to the rules.

“This is a significant advancement for the EigenLayer protocol because it fosters a free marketplace where Operators can earn rewards for their efforts while allowing AVSs to launch verifiable services,” EigenLayer stated in a blog post.

With over $15 billion funneled into the platform and the recent launch of the EIGEN token, EigenLayer’s ecosystem has expanded rapidly, now boasting more than 100 AVSs in development. Noteworthy services include EigenDA, a data availability solution operated by Eigen Labs, and ARPA Network, specializing in trustless randomization.

While EigenLayer pioneered the restaking concept, the absence of slashing functionality had allowed competitors like Symbiotic to secure a foothold in the market.