EigenLayer Offers More EIGEN Tokens in Airdrop Update

EigenLayer, a prominent Ethereum restaking protocol, has announced a significant expansion to its initial EIGEN token airdrop. This decision is a direct response to community backlash.

The protocol will distribute an additional 100 EIGEN tokens to each of over 280,000 eligible wallets to address user concerns. This move will drastically increase user satisfaction and demonstrate the foundation’s commitment to community feedback.

Addressing the Backlash: EigenLayer’s Updated Token Strategy

The initial airdrop, announced earlier last week, drew sharp criticism from the EigenLayer community. The backlash led to calls for a more equitable distribution.

Users expressed dissatisfaction with the allocation formula. They perceived it as disproportionately favoring investors and early contributors over average users.

Read more: What Is EigenLayer?

The Eigen Foundation, responsible for the EigenLayer ecosystem, has released a detailed plan for distributing additional rewards. The latest plan clarifies lock-up countdowns and timelines while aiming to increase user engagement across all project phases. Users who interact with EigenLayer before the cutoff on April 29 will benefit from an augmented airdrop, which will be processed after May 10.

This strategy also extends to participants of EigenLayer’s Season 1 and Season 2 initiatives. All Season 1 participants will receive at least 110 EIGEN tokens, which includes the base amount of 10 EIGEN plus the new addition of 100.

Similarly, Season 2 participants engaging in staking activities between March 15 and April 29 are assured a minimum of 100 EIGEN tokens. However, it’s important to note that only users who joined before April 29 will be eligible for this distribution round.

Furthermore, the foundation has provided crucial details on the vesting schedule for tokens held by investors. They indicated vesting will start once tokens become transferable, with an expected unlocking phase post-September 30. This timeline coincides with the launch of new functionalities on the EigenLayer mainnet.

Moreover, the Eigen Foundation explained that it would update the missed allocations for those involved in the testnet. They promise more details are to come.

“We are aware that certain testnet users were omitted from claims eligibility. Missed testnet user allocations will be updated as part of Phase 2 of Season 1. We will provide more details in the coming weeks,” the Eigen Foundation wrote.

Read more: Best Upcoming Airdrops in 2024

EigenLayer has quickly ascended as a key player in the decentralized finance (DeFi) sector since its inception in 2023. Currently, it is ranked as the second-largest DeFi protocol with a total value locked (TVL) of $14.85 billion, according to DefiLlama.