New mitigation mechanism in ELIP-002 improves accountability in the EigenLayer ecosystem

EigenLayer, leader of the Ethereum re-staking protocol, has revealed its second EigenLayer Enhancement Proposal (ELIP-002).

This latest initiative should constitute an important step towards accountability and operational efficiency of its ecosystem.

EigenLayer releases ELIP-002

According to the official message, the proposal introduces a penalty mechanism, known as slashing, as well as two innovative concepts: single stake and operator sets. Together, these capabilities enable Application Verification Services (AVS) to enforce credible commitments by penalizing operators who fail to meet their service obligations.

Discounts serve as a deterrent against operational defects such as calculation errors or service downtime. Thanks to Unique Stake, AVS can differentiate and allocate specific stakes to operators, allowing sanctions adapted proportionally to the severity of their failures. At the same time, operator sets classify operators into manageable groups, simplifying the application of reduction rules and ensuring seamless implementation across various services.

The introduction of ELIP-002 signifies a major upgrade for the EigenLayer ecosystem. By providing AVSs with tools to reward compliance and penalize non-compliance, this framework promotes fair execution and reliability within the network. This enhancement aims to strengthen user trust in EigenLayer’s decentralized architecture while maintaining the transparency and flexibility of its scalable protocol.

The proposal solicited community feedback.

“With the release of Slashing ELIP, we invite everyone in the EigenLayer community to participate by reviewing the proposal and sharing your feedback in the comments below (or on Github). Your input will help us refine the proposal to ensure it meets user needs and expectations.

Developments in the EigenLayer ecosystem

Restaking has become a crucial model for blockchain security, allowing protocols to rely on reinvested assets instead of launching native tokens. This lowers the barriers to entry for DApps while fueling innovation. DeFiLlama brings in approximately $27 billion in TVL across restoration protocols, with EigenLayer leading the industry in contributing over $18 billion, according to DeFiLlama.

The latest development coincided with the Eigen Foundation’s commitment of 1% of its EIGEN token supply to the Protocol Guild, a collective supporting Ethereum Layer 1 R&D. As noted recently, this initiative aligns with the mission of EigenLayer of strengthening the security of Ethereum with a new buyback. The Protocol Guild’s 180+ members across 29 teams focus on critical development areas, ensuring Ethereum’s long-term resilience and sustainability.