EigenLayer, an Ethereum restaking protocol boasting nearly $16 billion in total value locked (TVL), is set to debut its native EIGEN token on May 10.
Today the @eigenfoundation introduces EIGEN, based on research by @eigen_labs, alongside a Season 1 Stakedrop.
EIGEN is the Universal Intersubjective Work Token, complementing ETH as the Universal Objective Work Token in EigenLayer.
See the full Eigen Foundation announcement: https://t.co/ZxswOiwWyR
— EigenLayer (@eigenlayer) April 29, 2024
The project has made its token’s whitepaper available on GitHub and established a claim portal on its website. However, residents of the United States and Canada are ineligible to claim EIGEN due to regulatory constraints. The Eigen Foundation has implemented measures to detect and block proxy and VPN usage to prevent claims from these prohibited jurisdictions.
Initially, the EIGEN token will not be transferable, as EigenLayer aims to achieve specific milestones, including enhancing the decentralization of the token supply and fostering community engagement, before enabling trading.
EigenLayer ranks as DeFi’s third-largest protocol by TVL, trailing only Lido and Aave, as reported by DeFiLlama. It allows users to restake their Ether or liquid staking tokens (LSTs) to earn additional yield by securing third-party applications known as Actively Validated Services (AVS).
Of the total 1.67 billion EIGEN token supply, 45% has been allocated to community initiatives, while investors receive 29.5%, and contributors receive 25.5%, according to a report from The Block. Investor and team allocations will vest linearly over two years following a one-year cliff.
The Eigen Foundation has earmarked 15% of the total EIGEN supply for airdrops, with 5% claimable on May 10 and the remainder reserved for future incentives. Notably, only direct restakers and users who participated via Liquid Restaking Tokens (LRTs), such as EtherFi’s eETH and Renzo’s ezETH, are eligible for the initial claim.
However, users of related DeFi protocols like Pendle and Equilibrium will need to wait until Season 2 for eligibility. The website explains that determining suitable recipients for the stakedrop among certain LRT end users posed challenges or required subjective decisions due to their interactions with specific DeFi protocols.
