EigenLayer Crypto's Biggest Project This Year Removes LST Caps, Unpause Restaking Deposits

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EigenLayer Launches Phase 1 Claims for EIGEN Airdrop – Crypto News

Published

2 years ago

May 11, 2024

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EigenLayer has started the much-anticipated EIGEN token airdrop, which is the major achievement for the project. Nevertheless, new tokens remain non-negotiable for an unspecified time, delaying their tradability. This is in the midst of rumors that EIGEN’s fully diluted market cap is in the range of $15 billion.

EIGEN Token Claims Begin

The Eigen Foundation, created by Eigen Labs, declared the start of the EIGEN token claims on May 10th, 2024. This initial phase, part of Season 1, includes 6.05% of the token’s initial supply, translating to approximately 113 million EIGEN tokens.

As a result, users can claim their tokens by visiting claims.eigenfoundation.org, with the claim window remaining open until September 7, 2024.

1/ EIGEN stakedrop claims are open! 🪂 ♾️∑

We’re thrilled to announce that claims for EIGEN are now open for Phase 1 of Season 1!

The EIGEN token accelerates @eigenlayer & Ethereum toward a shared mission of open innovation. ♾️

Get started: https://t.co/AS9lkY9vHp pic.twitter.com/JtihuGHF5Z

— Eigen Foundation (@eigenfoundation) May 10, 2024

EigenLayer, a popular restaking provider on Ethereum, has gained much attention in the blockchain world. It is backed by more than $100 million from Andreessen Horowitz. The platform’s pooled security system already holds about $16 billion in user deposits, making it popular in crypto.

Market Valuation and Non-Transferability

However, despite the hype, EIGEN tokens are non-transferable for the moment, which creates a certain period of indecisiveness about their actual trading price. EIGEN has been valued at approximately $9 per token in the perpetual futures markets such as Aevo and Hyperliquid.

The pricing is speculative, and expections are the possible spot price to appear once the tokens are transferable.

Commenting on the speculation, Julian Koh, CEO of Aevo, pointed out that the futures markets are a reference price, similar to how prediction market odds are used to forecast actual events. The non-transferability decision has provoked discussions, some of which have been concerned that many in the community need to know when the trading will start.

Community Response and Adjustments

The community criticized the early distribution strategy for EIGEN, especially because it excluded users from certain jurisdictions, such as the U.S., Canada, and China. These limitations were considered geographic since there were no initial restrictions on deposits or points awards in the geographical location.

Furthermore, third-party liquid restaking points were omitted from this first airdrop phase, which made users even more frustrated.

Following the received feedback, EigenLayer adjusted the distribution plan, adding extra tokens for different groups of users in the Season 1 airdrop. The project has assured deeper consideration of points by liquid restaking services in the airing of “Season 2,” expected to correct such initial misses.

Next Steps and Future Plans

EigenLayer is implementing a staged process for its token distribution. Season 1, Phase 2, planned for mid-June, will boost the available supply by up to 6. 75%. The project allocates 15% of the total initial token supply for community distribution in all seasons. The phased roll-out is meant to ensure all-round participation and continued engagement from the community.

3/ 🎉 This is just the start – 15% of the initial token supply has been set aside for the community across all seasons.

Season 1 starts with 6.05% of the initial supply ready to claim today, and Season 1 Phase 2 will bump that to 6.75% in mid-June! In total, Season 1 includes… pic.twitter.com/aGf7ved28B

— Eigen Foundation (@eigenfoundation) May 10, 2024

An eligible user can claim EIGEN tokens by simply participating in different staking activities on EigenLayer. Participants who staked ETH or liquid staking tokens (LSTs) prior to March 15th, 2024, receive additional bonuses.

Users who participate in DeFi activities with the help of platforms such as Kelp, Pendle, and Equilibrium also receive additional benefits.

The airdrop has been stressed by the EigenLayer team as integral to the creation of a culture of collaboration and decentralization. Through the distribution of EIGEN tokens, the goal is to speed up innovation and create wider platform adoption.

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