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The Eigen Foundation Unveils Details of EIGEN Token Airdrop
The Eigen Foundation, a strong supporter of the Ethereum restaking protocol EigenLayer, recently released information about its upcoming token airdrop earlier this week. Staking in the realm of cryptocurrency involves locking up crypto assets to reinforce a blockchain’s security, integrity, and efficiency by aiding in the validation of transactions. EigenLayer specializes in Ethereum (ETH) “restaking,” which enables users to utilize a single stake across multiple blockchains.
According to the Eigen Foundation, the EIGEN token airdrop is scheduled to occur between May 10 and September 7, spanning a duration of 120 days based on a snapshot of eligible wallets captured last month. The initial “stakedrop” will assign 5% of the total token supply to users engaged in staking activities as of March 15.
Eligibility for the airdrop encompasses individuals who staked directly with EigenLayer or through liquid restaking tokens (LRTs). The first phase of the airdrop, referred to as “Season 1,” consists of two segments, with 90% of tokens allocated to users meeting the initial eligibility prerequisites and the remaining distribution scheduled for a later phase.
The Eigen Foundation mentioned that the remaining 10% of tokens are designated for users who interacted with EigenLayer in more intricate ways, where determining the appropriate end-user for EigenLayer was deemed either challenging or required a subjective decision. Further details were shared by the group on Twitter to elaborate on the allocation process.
Clarifications with respect to the Season 1, Phase 2 allocations of 10% (approximately 7.77M EIGEN), Pendle, and certain other unresolved (DeFi) contracts.
– Users of Pendle or any unresolved (DeFi) contract are not penalized in the distribution.– 10% is an approximate…
— Eigen Foundation (@eigenfoundation) April 29, 2024
Nevertheless, there are limitations to participation. The EigenLayer airdrop terms of service outline that certain regions will be ineligible to partake in the drop, with IP address blocks enforced for areas under international sanctions or deemed high-risk, such as the United States, Canada, China, Cuba, North Korea, Iran, and Venezuela. Measures have been implemented to prevent individuals in restricted regions from circumventing geo-location controls by utilizing VPNs and proxies.
Following the initial EIGEN drop, 15% of the total supply is preserved for future airdrops as specified by the foundation. EigenLayer, established in 2021 under the direction of former University of Washington data science professor Sreeram Kannan, saw its total value locked (TVL) exceed $3 billion. Notably, $560 million of the deposits to EigenLayer consisted of stETH, the liquid staking token offered by Lido Finance.
The Eigen Foundation, which recently surfaced to support research and development on the EigenLayer protocol, will allocate funds for grants, provide third-party assessments, and oversee progress towards increased decentralization. The introduction of the EIGEN token aims to address “intersubjective” faults, which are behavioral faults not identifiable solely through ETH restaking.
The whitepaper released alongside the news of the stakedrop elaborates on the structure and tokenomics of the Eigen ecosystem. Initially non-transferable and non-forkable, the EIGEN token is intended to evolve towards full functionality, including transferability and forkability, to foster long-term growth and maturity within the EigenLayer ecosystem.
Conclusion
The Eigen Foundation’s disclosure of the EIGEN token airdrop and the subsequent details surrounding eligibility, allocation, and future developments signify a significant step in advancing the EigenLayer protocol and engaging the cryptocurrency community in innovative staking mechanisms.
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