The entropy label injected into the MPLS label stack of a packet enables transit routers to load-balance MPLS traffic across ECMP paths or link aggregation groups (LAGs) using just the MPLS label stack as a hash input without having to rely on deep packet inspection (DPI). DPI requires more of the router's processing power, and different routers have different DPI capabilities.
This feature introduces disposition (removal) of the entropy label from the label stack of MPLS encapsulated Layer 2 (Ethernet) frames.