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Techub News reports that EigenLayer is about to launch a redistribution mechanism. AVS will soon be able to reuse and allocate confiscated funds based on its use cases, rather than destroying them. This is a significant change in the confiscation mechanism, enabling fund redistribution when commitments are breached or conditions change (e.g., liquidation or user compensation), which opens up new use cases such as lending and insurance protocols. Redistribution is particularly beneficial for AVS that need to increase liquidity and enhance risk management capabilities.

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