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EigenLayer, the restaking protocol is on the way to launching its native token, distribution mechanism involves airdrops for ecosystem participants.
EigenLayer, an innovative restaking protocol on Ethereum is all set to launch its native token EIGEN somewhere in May, followed by an exciting airdrop plan. The independent non-profit Eigen Foundation would release the tokens and 15% of the supply will be distributed to the platform stakers.
EigenLayer’s EIGEN Token And Season 1 Stakedrop
On April 29, Monday, EigenLayer posted a blog specifying the details of the upcoming native token launch and season 1 stakedrop.
It is a staking protocol on Ethereum that permits users to restake their Ether (ETH) and earn rewards. With over $15.646 Billion in Total Value Locked (TVL), the innovative restaking protocol is securing a strong position in crypto.
Moreover, the protocol is on its way to expanding its roots by native token launch and airdrop. As per the announcement, over 15% of the total supply of EIGEN would be allocated to the ecosystem participants in different seasons.
After launch, individuals can stake the freshly prepared token to secure EigenDA, with more Actively Validated Services (AVSs) expected soon.
Tokenomics
the token would have a total supply of 1.67 Billion among which 45% is reserved for the community. Also, 15% of each of this is reserved for stakedrops, future community initiatives, and R&D ecosystem development.
In the same way, 29.5% is allocated to the investors and 25.5% to the early contributors.
Likewise, the direct influence of the announcement is recorded on the protocol’s volume, transactions, and Unique Active Wallets (UAW) count. According to DappRadar data, On April 28, the protocol’s transactions, volume, and UAW stood at 2.07K, $67.05K, and 1.77K, respectively.
However, on April 29, after EigenLayer’s announcement, the transaction count hit over 6.2K whereas the volume and UAW surged to $375.2K and 5.26K, respectively.
Besides, participants can claim the token within 120 days from May 10, 2024. The tokens will remain non-transferable at the initial phase to foster the token’s utility and governance. Moreover, the Investors and early contributors are subject to a total lockup period of three years for their allotments.
Despite this, a few of the EigenLayer stakers protested, claiming that the airdrop allocation is confusing and relatively small. The users were expecting a major portion to be airdropped.
What About Intersubjective Faults?
Apart from the airdrop and token launch, the protocol is also focused on introducing a new crypto-economic security system, termed inter-subjective forking.
The new security system would address intersubjective faults that are undetectable on-chain, including data withholding in oracles on top of EigenLayer.
Intersubjective Forking would be implemented separately from the staking protocol’s original plan of slashing ETH restakers. Also, the new mechanism is supposed to eliminate the need to unnecessarily burden ETH validators.
EigenLayer is a platform for maximizing open innovation and revolves around the core concept of restaking. Founded by Sreeram Kannan in June 2023, the project enables users restake native ETH and liquid staking tokens (LSTs).
Anurag is working as a fundamental writer for The Coin Republic since 2021. He likes to exercise his curious muscles and research deep into a topic. Though he covers various aspects of the crypto industry, he is quite passionate about the Web3, NFTs, Gaming, and Metaverse, and envisions them as the future of the (digital) economy. A reader & writer at heart, he calls himself an “average guitar player” and a fun footballer.
