- EigenLayer announced it would launch season one of its airdrop on May 10.
- EIGEN tokens would play a key role in the recently introduced "intersubjective forking."
- Some crypto community members have expressed dissatisfaction with the airdrop vesting schedule.
EigenLayer's phase one for the first season of its airdrop will go live on May 10. The newly launched EIGEN token would play a key role in securing EigenDA and actively validated services (AVS).
Also read: EigenLayer TVL crosses $15 billion despite potential yield crisis
Eigen Foundation unveils EIGEN airdrop
Ethereum restaking protocol Eigenlayer announced the airdrop of its native token EIGEN on Monday. After going live on April 9, rumors of a potential airdrop from the leading Ethereum restaking protocol reached the crypto community. The platform, which boasts nearly $16 billion in total value locked (TVL), said the airdrop or so-called "stakedrop" will go live in May. The Eigen Foundation, a newly created non-profit "dedicated to accelerating the growth of the EigenLayer ecosystem, made the airdrop announcement."
However, the token will face a brief lockup period before it is available for sale in the broader market. In the meantime, users will stake their tokens to secure the EigenDA data availability layer. The Eigen Foundation said other AVS will also participate in staking soon.
Read more: Restaking protocols continue their rise despite risk concerns
EIGEN's total supply at launch is 1.67 billion tokens, with 45% going to the community, 29.5% to investors, and 25.5% to early contributors. While the issuance will follow different vesting schedules and structures, EIGEN will operate as an inflationary token.
The airdrop, which would unfold in different seasons, would see 5% of the initial token supply going to restakers in this first season "based on a snapshot taken on March 15, 2024, at Ethereum block #19437000." Season 1 comprises two phases, with 90% released on May 10, while the other 10% in subsequent releases.
The launch of EIGEN follows a key introduction in EigenLayer known as "intersubjective forking."
The process involves punishing bad behavior that can't be objectively identified on-chain by allowing for the forking of the token itself "without forking Ethereum Mainnet consensus."
The Eigen Foundation noted that "Intersubjective forking is the key innovation behind the EIGEN token," and it would complement Ethereum restaking.
Also read: Ethereum dips slightly amid Renzo depeg, BlackRock spot ETH ETF amendment
Since the airdrop announcement, some crypto community members have expressed disappointment concerning certain areas of the airdrop schedule, especially the initial lockup period. Some even went as far as accusing EigenLayer of providing insider information to key individuals.
On January 2, this wallet funded freshly from Binance deposited roughly 4,000 wbETH, or $13,000,000 into EigenLayer
— Blur (@BlurCrypto) April 29, 2024
Over the next 3 months, they amassed nearly 3,500,000 Eigen points
On March 16, one day following the snapshot, they withdrew it all
Criminal. pic.twitter.com/UBCyLVQxtU
It's important to note that the airdrop excludes users from key areas such as the US, Canada, and some parts of Africa and Asia. Several users also expressed dissatisfaction with the country segregation in the airdrop.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
New York Attorney General reaches $2 billion settlement with Genesis after claims of fraud
New York Attorney General Letitia James says her office has secured a $2 billion settlement from Genesis. AG Letitia James sued the crypto company in October on account of lying and defrauding investors of over $1 billion.
Digital asset weekly inflows jump over 600% following response to CPI report
Coinshares weekly report of digital asset flows shows that crypto assets witnessed more than a 600% increase in net inflows last week after US Consumer Price Index saw a softer-than-expected inflation increase.
Ethereum sees a 16% spike as Bloomberg analysts surprisingly increase approval odds to 75%
Ethereum's (ETH) price gained over 16% on Monday as Bloomberg analysts updated their odds for spot Ethereum ETF approval to 75%. Grayscale’s CEO stepping down from his role days before the Securities & Exchange Commission (SEC) decides on the ETFs has also added complexity to the predictions of analysts.
Tokens with high FDVs, low circulating supply face fierce criticism from crypto community
Tokens with high fully-diluted valuations (FDV) have been subject to fierce criticism recently following a series of token unlocks that has caused losses for several investors. As a result, Binance has said in an announcement on Monday that it will give more focus to small and medium-valued crypto projects.
Bitcoin: Is BTC out of the woods? Premium
Bitcoin (BTC) price action in the past two days has confirmed the resumption of the bull run. However, BTC needs to clear a few key hurdles before investors can go all-in.