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EigenLayer Releases ELIP-002 Proposal: Introducing a Penalty Mechanism

On December 13th, EigenLayer released the second EigenLayer Improvement Proposal (ELIP-002) on social platforms: Slashing. The ELIP proposal introduces Slashing for the EigenLayer protocol to enhance crypto-economic commitment and provide AVS (Active Verification Service) with tools to innovate and reward high-quality service operators. The proposed penalty mechanism design incorporates two new concepts proposed by EigenLabs: Unique Stake and Operator Sets, enabling AVS to penalize operators who fail to fulfill their commitments, such as miscalculation or activism issues. Unique staking ensures that each AVS has exclusive access to a specific penalty.