Ethereum's EigenLayer Unveils Additional Airdrop of 28 Million EIGEN Tokens Amidst User Criticism
Summary:
In response to user criticism, Ethereum restaking protocol EigenLayer is set to distribute approximately 28 million additional EIGEN tokens to over 280,000 wallets. This comes on the heels of the initial airdrop which was deemed restrictive by some users. Season 1 and Season 2 claimants will receive a minimum of 110 and 100 EIGEN tokens respectively. Despite not yet officially released, EIGEN perpetual futures contracts are trading at around $10, making the latest airdrop worth an estimated $280 million. Users will be able to claim but not sell their tokens from May 10. Further details about token transferability are set to be released in upcoming weeks.
EigenLayer, a restaking protocol on Ethereum, is set to distribute an additional 28 million EIGEN tokens to more than 280,000 wallets. This follows closely on the heels of its initial airdrop announcement. Despite criticism from users who found certain aspects of the initial distribution fairly restrictive, EigenLayer committed on Monday to allocate 15% of its overall supply towards its community. A post from the Eigen Foundation on May 2 clarified that these additional tokens will be distributed to individuals who have engaged with the protocol before April 29, encompassing both newcomers and initial airdrop participants.
In an update, the restaking protocol stated that a minimum of 110 EIGEN tokens are earmarked for Season 1 claimants, while those who utilized the protocol between March 15 and April 29 - otherwise known as Season 2 claimants - are set to receive a minimum of 100 EIGEN tokens. Although EIGEN tokens haven't yet been formally introduced to the market, perpetual futures for the token are currently trading at $10 on the derivatives market, as shown by Aevo data. Thus, the renewed airdrop could potentially be valued at around $280 million.
However, the price of EIGEN could see dramatic changes before its official distribution day on May 10. The restaking protocol experienced some backlash after revealing its "stakedrop" program on April 30. Detractors mainly took issue with the nontransferable nature of EIGEN tokens, perceived low community allocation of 15%, restrictive geo-blocking measures and a VPN block that barred users from 30 countries — including the United States, Canada, China and Russia — from acquiring EIGEN tokens.
In response to discontent over the initial airdrop, EigenLayer noted its intention to accommodate more of its testnet users who had been left out from the airdrop. The organization highlighted that the allocations meant for overlooked testnet users will be addressed in Season 1's second phase, with more details to surface in the upcoming weeks.
During its initial airdrop announcement, the Eigen Foundation indicated that whilst users can claim tokens from May 10, they would be kept from transferring or reselling them until a yet-to-be-disclosed date. This control was implemented to make sure crucial features like payments and slashing parameters were perfected before EIGEN tokens could be transferred among users. EigenLayer, in its most recent post, expanded upon details related to EIGEN token's non-transferability, yet failed to specify the date when users can transfer tokens. It stated that private investors and team members will experience a one-year lock-up period after EIGEN tokens become transferable to community members. Following this, they will unlock at 4% per month, fully unlocking three years after becoming transferable. This assures that the protocol's users obtain transfer authority sooner than core contributors.
Published At
5/3/2024 8:50:13 AM
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