EigenLayer Airdrop Launched, Token Trading Delayed

EigenLayer's inaugural airdrop commenced on Friday, distributing a portion of the protocol's 1.6 billion tokens to users. However, these tokens will remain non-transferable for several months, postponing their valuation determination. The initial claim window covers 6% of the token supply, with subsequent "stakedrops" planned.

EigenLayer Airdrop Commences, Token Transferability Delayed

New York, NY, May 6, 2023 - EigenLayer users have initiated the claiming process for their share of the protocol's 1.6 billion EIGEN tokens, distributed through an airdrop. However, the tokens will remain non-transferable for several months, hindering immediate valuation.

According to a blog post by the Eigen Foundation, EIGEN tokens will become unlockable after the implementation of new features and further decentralization of the protocol. These milestones are targeted for completion by September 30, 2024.

The airdrop has garnered significant attention as EigenLayer has emerged as a prominent player in the decentralized finance (DeFi) space. Since its gradual rollout last June, the protocol has attracted $15 billion in user deposits, solidifying its position as the second-largest project in the DeFi ecosystem.

EigenLayer has introduced the novel concept of "restaking," allowing the capital and hardware used for Ethereum operations to be simultaneously employed for other protocols. While critics have raised concerns about the potential introduction of risks to the Ethereum network, Eigen Labs has taken steps to address these concerns and potentially simplify the launch of future protocols.

In February 2023, the company announced a $100 million investment from venture capital firm Andreessen Horowitz.

The current airdrop allocation represents approximately 6% of the total EIGEN supply. EigenLayer users can claim an additional 15% of the tokens in subsequent "stakedrops," organized by parent company Eigen Labs.

The remaining token supply has been allocated to company employees, investors, and the Eigen Foundation, a newly established entity designed to foster the growth of the EigenLayer ecosystem.

For months, Eigen Labs refrained from discussing a potential airdrop, declaring "there is no token" in response to user inquiries. However, the distribution of "points" to depositors hinted at the existence of a forthcoming token, prompting a surge in cryptocurrency investments into the protocol.

Despite the anticipation, some users expressed dissatisfaction upon learning the details of the EIGEN token distribution plan. Notably, they objected to the exclusion of users from the United States, China, and other countries from claiming their earned EIGEN.

EigenLayer responded to the criticism by distributing an additional 100 EIGEN tokens to most users.

Currently, EigenLayer points are trading at $0.20 on Whales Market. On Aevo, EIGEN-based perpetuals are priced just under $9. If all 1.6 billion tokens were to circulate at this price, the market capitalization of EIGEN would approach $15 billion.

While direct token trading remains prohibited for the next few months, users can immediately stake or lock up their tokens, according to the Eigen Foundation. Similar to Ethereum staking, locking up EIGEN allows users to lend capital to the protocol in exchange for a modest reward.

On Friday, users could only stake their EIGEN through the EigenDA protocol, developed by Eigen Labs. The Eigen Foundation confirmed that those who stake their EIGEN will be eligible for future stakedrops.

The second phase of the initial airdrop is scheduled to commence in mid-June, allowing users who have accumulated points through protocols like Pendle to claim EIGEN. The claim period for EigenLayer's first airdrop will conclude on September 7.

For further inquiries, please contact Aleks Gilbert, DL News' New York-based DeFi correspondent, at aleks@dlnews.com.