EigenLayer's EIGEN Airdrop Begins, but Tokens Remain Locked

EIGEN airdrop has been initiated by EigenLayer, a popular blockchain startup, distributing non-transferable tokens initially. The launch supplies 1.67 billion EIGEN, with a potential value of $15 billion. While the token's worth is estimated at $9 on decentralized exchanges, its actual tradability remains uncertain.

EigenLayer's EIGEN Airdrop Commences, Tokens Remain Non-Transferable Temporarily

EigenLayer, the highly anticipated restaking service on the Ethereum blockchain, has initiated its long-awaited EIGEN airdrop. However, users will have to exercise patience before engaging in token trading, as the project has implemented a non-transferability restriction.

Non-Transferability and Token Value

The Eigen Foundation, a non-profit organization established last week by Eigen Labs, the team behind EigenLayer, initiated "claims" for EIGEN on Friday. These tokens will eventually become transferable at an unspecified future date. In the meantime, speculators on decentralized exchanges such as Aevo and Hyperliquid are valuing EIGEN at approximately $9 per token. With a total supply of 1,673,646,668.28466 tokens at launch, EIGEN's fully diluted value would approximate $15 billion.

Julian Koh, CEO of Aevo, clarified the situation in a Telegram message, stating that users can view the current valuations as indicative of what the spot price might be once the tokens become transferable. Traders utilize perpetual futures, also known as "perps," as a reference point for speculating on an asset's future price without directly trading it.

Background on EigenLayer and EIGEN

EigenLayer, a blockchain startup that has garnered substantial attention, has secured over $100 million in funding from investors including Andreessen Horowitz. Before its official launch, EigenLayer's "pooled security" system attracted approximately $16 billion in user deposits.

The EIGEN token, a "Universal Intersubjective Work Token," has been met with some controversy. While the majority of EigenLayer's key features are still in development, the primary motivation for user deposits has been "points," which crypto traders had anticipated would be connected to a future airdrop.

Controversy and Revision of Airdrop Plan

Eigen Labs' announcement of the EIGEN distribution plan sparked backlash from EigenLayer point-earners. Apart from the prolonged non-transferability period, users objected to the project's decision to exclude users from certain jurisdictions, such as the U.S., Canada, and China, from claiming tokens. This decision was met with criticism as the project had initially placed no geographical restrictions on deposits or points awards.

Furthermore, some individuals were disappointed that points from third-party "liquid restaking services" would not be considered in the "Season 1" airdrop, even though these services accounted for a significant portion of overall deposits. Whether these points will be factored into EigenLayer's future "Season 2" airdrop remains uncertain.

In response to community feedback, EigenLayer revised its plan by allocating additional funds to certain users in the "Season 1" airdrop.