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“Slashing” refers to the method that EigenLayer will use to keep AVS operators honest: The protocol will rely on a proof-of-stake system similar to Ethereum’s, where AVS operators (also called validators) are at risk of having their “stake” revoked if they act maliciously. EigenLayer will ultimately pay out interest to restakers, but that function, too, is in progress as Eigen Labs continues to work out kinks with its “in-protocol payments” system.
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