EigenLayer introduces Protocol Council to advance decentralized governance

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Could the recently established Protocol Council serve as a crucial factor in enhancing the security of EigenLayer’s protocol and fostering its growth that is driven by the community?

January 14th saw EigenLayer (EIGEN) unveil their new Protocol Safety Committee, designed for maintaining protocol safety and assessing potential improvements to EigenLayer. This announcement was made through a tweet from the Eigen Foundation.

3/ The Council overseeing the Protocol keeps the security of the protocol by examining and endorsing suggestions for improving EigenLayer (ELIPs), making sure that all alterations contribute to the progression of the protocol and foster growth within its ecosystem.

This significant move signifies a crucial milestone in the development of EigenLayer’s decentralized governance structure.

— Eigen Foundation (@eigenfoundation) January 13, 2025

As a cryptocurrency investor, I’ve come across EIGEN – a revolutionary protocol operating on Ethereum (ETH). This innovative system offers an intriguing feature called restaking. With my staked ETH, which is already secured for the network, I can now contribute to the security of various other applications as well. It’s like multiplying the protective power of my ETH!

Essentially, when you lock up your ETH for network security purposes on Ethereum, it can also be utilized to bolster the safety of distributed services like transaction sequencers, oracles that offer real-world data, and data availability layers which ensure information is accessible and verifiable. This expansion in the use of staked ETH opens up a variety of new opportunities for decentralized applications.

The recently established Protocol Council will play a crucial role in guiding and monitoring the implementation of the specified enhancements. This includes thoroughly reviewing each improvement to ensure it aligns with the protocol’s long-term vision, promoting growth within the wider ecosystem, and encouraging active participation from the community.

Beyond establishing the council, EIGEN also initiated a Telegram group for the Eigen Council. This platform invites the community to take part in decision-making, cast votes on suggestions, and propose new ideas. Those who actively participate will be rewarded with EIGEN tokens, which adds an interactive element to the process.

As the Protocol Council comes into play, we’re simultaneously introducing the Eigen Council on Telegram. This exclusive group can contribute to shaping the Eigen Decentralized Autonomous Organization (DAO). Actively participating voters will be compensated with $EIGEN tokens. Keep yourself informed ⤵️

— Eiqcn Fcundaticn (@eigcnfoumdation) January 13, 2025

EigenLayer enables users to restake any ERC-20 token as of August 2024, a feature introduced alongside permissionless token support on its mainnet. This means that stakers can now utilize various ERC-20 tokens, such as AVS tokens, stablecoins, and Bitcoin(BTC) backed assets, to bolster other networks and receive compensation.

Beyond that, EigenDA – a service offered by EigenLayer for affordable data accessibility in rollups – also allows for the establishment of custom quorums backed by re-staked ERC-20 tokens. This added feature provides extra adaptability to cater to unique security requirements within rollup environments.

Currently, the EIGEN token is being traded at approximately $2.98, with a trading volume exceeding $137.35 million over the past 24 hours (as of January 14). In total circulation are more than 210.8 million EIGEN tokens, giving the token a market capitalization of around $630 million.

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2025-01-14 09:32