Restaking protocol EigenLayer Unveils Token Distribution Plan
The Eigen Foundation, an independent non-profit organization, has announced plans to launch the Eigen token, the native token of the EigenLayer platform. According to a recent statement, the token will be released in May, with a unique distribution model that includes a dedicated allocation for stakers.
Token Distribution and Community Focus
The total supply of Eigen tokens at launch will be 1.67 billion. The Eigen Foundation has allocated a significant portion of the tokens to the community, amounting to 45% of the total supply. This community allocation is further subdivided into three categories: stakedrops (15%), community initiatives (15%), and ecosystem development (15%).
Additionally, investors will receive 29.5% of the tokens, while early contributors are allocated 25.5%. These allocations come with a three-year lockup period. The first year involves a complete lock, followed by a gradual release over the next two years at a rate of 4% per month.
EigenLayer, a platform that enables users to deposit and “re-stake” Ether from various liquid staking tokens, has gained significant traction since its launch in June last year, with $16 billion worth of Ether staked on the platform.
The Eigen Token and its Role in the Ecosystem
Along with the token distribution announcement, EigenLayer released a whitepaper detailing the structure and utility of the Eigen token within the EigenLayer ecosystem. The token will play a crucial role in securing the platform’s data availability layer, EigenDA, and potentially other actively validated services (AVSs).
The EigenLayer Community Airdrop (“Stakedrop”)
The community airdrop, dubbed a “stakedrop” by EigenLayer, will distribute 15% of the token supply to users who participate in staking on the platform. This distribution will take place across multiple seasons, with the first season offering a 5% allocation based on a snapshot of staking activities taken on March 15, 2024.
Of this first season allocation, 90% of the tokens will be claimable on May 10, with a 120-day claim window for eligible restakers. The remaining 10% will be claimable in the second phase of the first season, commencing one month later.
The distribution calculation is linear, based on the amount of Ether staked and the duration of the stake. Additionally, factors like native restaking will receive an additional reward boost. To foster community consensus and ensure decentralization, the tokens will be non-transferable initially, with transfers enabled at a later date.
Users will also have the option to stake the Eigen token to secure EigenDA and potentially other AVSs, further integrating the token into the platform’s governance and utility.
The remaining 10% of the community allocation has been set aside for future seasons, indicating a long-term commitment to community engagement and development.
Introducing Intersubjective Forking
In conjunction with the token launch, EigenLayer is introducing a novel crypto-economic security system known as intersubjective forking. This mechanism addresses intersubjective faults, such as data withholding in oracles built on EigenLayer, which are malicious behaviors that are not immediately detectable on-chain.
Intersubjective forking will complement EigenLayer’s existing slashing mechanism for on-chain behaviors, ensuring the platform’s security and reliability without burdening Ethereum validators unnecessarily.
Disclaimer: The content of this article is for informational purposes only. It is not intended as financial advice or investment advice. Please do your own research and consider seeking professional advice before making any financial decisions.
