The first phase of EigenLayer’s highly anticipated airdrop has sparked criticism from within the project’s ecosystem. Critics have raised concerns about several aspects of the airdrop, including the initial non-transferability of EIGEN tokens, the exclusion of certain protocols from the drop, jurisdictional restrictions, and the linear allocation of tokens.
EigenLayer, the second-largest decentralized finance protocol with a total value locked at $15.7 billion, earmarked 15% of EIGEN’s 1.67 billion token supply for its community. Points holders from the first season of the airdrop campaign will receive 5% of EIGEN’s supply.
However, users have expressed dissatisfaction with the linear distribution approach, arguing that it favors smaller stakers at the expense of larger ones.
Additionally, users have criticized the decision to make EIGEN tokens initially non-transferable, despite claims going live on March 10. The Eigen Foundation defended this decision, citing the need to ensure key features are running smoothly before allowing token transfers.
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
Some users, particularly those associated with Pendle, a protocol excluded from the initial airdrop phase, have voiced frustration.
Wait a minute. Let me get this straight. @pendle_fi is responsible for a large amount of deposits to @eigenlayer bc of the points meta…but $EIGEN is going to rug @pendle_fi users for season 1??? pic.twitter.com/IXnyJI8gYP
— CryptoCondom (@crypto_condom) April 29, 2024
Pendle facilitated leveraged Eigen points farming via liquid staking tokens (LRTs), and many users expected to receive significant EIGEN allocations.
However, EigenLayer’s co-founder and CEO indicated that Pendle users may still receive EIGEN tokens in later phases of the airdrop season.
Geographic restrictions have also caused discontent, with users from certain countries barred from claiming EIGEN tokens. Despite accepting deposits from these users, EigenLayer’s efforts to enforce these restrictions by preventing VPN access to its claims portal have drawn criticism.
I've just seen that. Accepting stake from those countries and not rewarding them isn't right. They took a very real risk for nothing.
— Aylo (@alpha_pls) April 29, 2024
Furthermore, users have expressed concern over the immediate vesting of tokens allocated to EigenLayer’s investors, suggesting that the airdrop may disproportionately benefit insiders. With 55% of EIGEN’s supply earmarked for its team and investors, community members have raised questions about the fairness of the airdrop’s design.
non-transferable airdrop✅
most tokens go to VCs✅
vesting starts immediately for VCs✅
tiny airdrop alloc✅
points trading encouraged but traders get rugged✅
spend a lot of effort banning VPNs✅
insiders know the precise block number of snapshot✅it’s so over
— zefram.eth (@boredGenius) April 29, 2024
