EigenLayer Airdrop: What Is The Controversy About EIGEN Token?

As an analyst with a background in cryptocurrency and blockchain technology, I cannot help but express my disappointment and concern regarding the recent token launch of EigenLayer and its unfair distribution of tokens to the community.

On April 29, EigenLayer, the Ethereum staking protocol, unveiled its long-anticipated native token, EIGEN. The token economics and airdrop associated with EIGEN have been described as intricate by some, raising eyebrows in the crypto world. Despite the EigenLayer team’s careful approach to their token, it has elicited significant criticism within the community.

On Twitter, some users expressed concern that the EigenLayer team made the token launch overly complex by using abstract language in their whitepaper and imposing restrictions on how tokens can be claimed. However, the team has set aside 15% of the total token supply for the community. Of this amount, 5% will be distributed to early adopters who have already amassed staking points.

As a crypto investor, I’m deeply troubled by the token distribution imbalance in this project. The majority of tokens, over 55%, have been allocated to investors and team members. This raises concerns about fairness and equitable distribution. On the other hand, early stakers who played a crucial role in making the protocol successful are only receiving a paltry 5% of the total token supply. This allocation is significantly lower than what is customary within the crypto community.

Despite the minimal allotment given to stakers, there will be a restriction on their ability to transfer the initially distributed tokens. This means that tokens cannot be traded in open markets right away after claiming them. The team justifies this move as necessary for initiating decentralization among token holders; however, some critics argue that it allows the team to regulate market supply.

“A setback is that the protocol no longer supports Airdrop for individuals located in the United States, Canada, China, and Russia. Consequently, those stakers who acquired points and reside in these countries are now unable to collect EIGEN tokens. This goes against the core values of decentralization that the crypto community strongly advocates for.”

In February, StarkNet, a layer 2 protocol, adopted a token distribution method similar to that of EigenLayer, resulting in significant criticism from the community. The StarkNet team subsequently amended their token allocation and vesting plans due to substantial token outflows, mirroring the investor-favoring approach of EigenLayer.

Due to EigenLayer’s unequal distribution of rewards, some stakers have decided to leave the protocol and take back their assets. The queue for asset withdrawals has reached an all-time high, with no new stakers joining the platform at this time.

EigenLayer Airdrop: What Is The Controversy About EIGEN Token?

As a researcher, I’ve come across an update from the Eigen Foundation regarding their EigenLayer project. Yesterday, they announced that they would be distributing an additional 100 EIGEN tokens to all stakers within their community. Furthermore, they clarified that for team and investor tokens, there will be a one-year locking period following the transferability of the community-allocated tokens.

Beginning on May 10th, you’ll have the opportunity to acquire EIGEN tokens. This period will last for approximately the next 120 days.

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2024-05-03 16:38