Ethereum's Eigenlayer Kicks Off Token-Claim Process Amidst Controversial Reception
Summary:
Ethereum restaking protocol, Eigenlayer, has announced its airdrop for EIGEN token claims for Season 1, Phase 1 rewards. The EIGEN token is currently non-transferable but will become transferable after new features are implemented, a process expected to culminate by September 30. The claim process is due to end on September 7, after which users won't be able to claim their tokens. The token is not accessible in more than 30 jurisdictions, including the United States, Russia, China, and Canada. VPN users are also restricted from claiming the token. A total of 6.05% of the EIGEN total supply is available through the claim process, with a further 0.7% set to be unlocked from mid-June under “Phase 2” operations. The EIGEN airdrop has raised debates within the decentralized finance community over its restrictions.
The restaking protocol of Ethereum, Eigenlayer, announced the initiation of its token-claim process or "airdrop" for Season 1, Phase 1 rewards on May 10, as mentioned in a blog post by the development team. Users who are due to receive the newly introduced EIGEN token can now claim it after weeks of anticipation. However, the EIGEN token currently cannot be transferred, disallowing users from selling it. The team's statement confirmed that the EIGEN token will only become transferable once new elements are integrated into the system in coming months. The expected date for this implementation is September 30. The claim process will be concluded on September 7, post which claimers won't be able to acquire their tokens. Eigenlayer's specifications highlight that the token is not accessible to users from more than 30 jurisdictions, including a few notable nations like the USA, Russia, China, and Canada. Moreover, most VPN server addresses have also been prohibited from claiming the token. Eigenlayer has imposed restrictions on token claims from VPN users. Related: Eigenlayer publishes EIGEN white paper and prohibits US users from claiming the airdrop. A total of 6.05% of the entire EIGEN supply has been made available through the claim process, and there will be a 0.7% increase starting from mid-June as Phase 2 commences, as said in the blog post. Beginning in mid-June, users of apps like Kelp, Pendle, Equilibrium, and others that are similar can begin claiming their tokens. Currently, the airdrop is predominantly available to users who had restaked Ether (ETH) or its liquid staking derivatives on Eigenlayer before March 15. Those users who have restaked liquid tokens can also stake their claims now, provided their activities aren't considered part of Phase 2. Those who restaked on Eigenlayer between March 15 and April 29 can claim an extra 100 bonus tokens now, while the majority of their claims will be available starting in mid-June along with other Phase 2 participants. However, the EIGEN airdrop has been a topic of debate within the decentralized finance community. The co-founder of Kuyen Labs, Leandro Schlottchauer, predicted that it might be the last of the impactful airdrops. Conversely, many Eigenlayer users have expressed their concerns over the airdrop, as it bans VPN servers, dispenses a non-transferable token, and utilizes what they believe to be a brief snapshot period.
Published At
5/10/2024 10:00:00 PM
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