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EigenLayer, after touching Restaking Frenzy, plans its own EIGEN token
EigenLayer, the restaging protocol that grossed $15.7 billion in depotsreleased a white paper It confirms plans for an EIGEN token on Monday, in what is likely to be one of the most anticipated rewards of the year for users of the Ethereum blockchain ecosystem.
According to a blog post written by the Eigen Foundation, the non-profit organization that supports the protocol, there will be a total supply of approximately 1.67 billion EIGEN tokens, of which 45% will go to the EigenLayer community. The 45% is divided into three subgroups, each receiving a 15% share for stakedrops, future community initiatives and ecosystem development.
“The total supply of EIGEN at launch is 1,673,646,668.28466 tokens,” the foundation revealed. “This number is the result of coding the phrase ‘Open Innovation’ on a classic telephone keypad.”
Cryptocurrency traders have been speculating for many months that EigenLayer would come out with its own token, and had been piling deposits into the protocol even before it went live a few weeks ago, betting that they would receive early adopter rewards. EigenLayer is at the center of a new trend known as “resttaking,” in which users ether (ETH) tokens deposited or “staking” as security on the Ethereum blockchain can be reused to secure additional networks or protocols.
The project is led by Sreeram Kannan, who founded it in 2021 when he was an associate professor of electrical and computer engineering at the University of Washington.
In Monday’s post, the Eigen Foundation wrote that in the first “season” of the “stakedrop,” as the team described the planned token release, approximately 5% of the token supply will be distributed to users based on their trading activities. staking on March 15, at Ethereum Block n. 19437000. The claim for these EIGEN tokens will open on May 10th and will close later 120 days.
According to the foundation, investors will be allocated 29.5% of the token supply and 25.5% will go to early contributors. Both groups will have a three-year lock-in period, “with a full lock-in in the first year, followed by a linear release of 4% of their total endowment each month over the next two years.”
Additionally, upon the launch of the EIGEN token, users will be able to secure EigenDA, Eigenlayer’s Actively Validated Service (AVS) for data availability, with their EIGEN tokens. More AVSs are expected to follow, the foundation wrote.
This reworked ETH is collectively used to secure these auxiliary AVS networks on EigenLayer.
As part of the EIGEN drop, the protocol is introducing a new technological design known as “intersubjective forking,” a feature intended to support “intersubjective defects.”
“Intersubjective defects are instances of misbehavior that cannot be objectively identified on-chain, yet two reasonable observers would agree that a sanction is deserved,” according to the blog post.
The system will allow AVSs to make “a much broader range of credible commitments than is possible today, significantly expanding the possibilities of what can be built on EigenLayer,” the foundation said. “Use cases include transaction orders, databases, prediction markets, storage services, oracles, artificial intelligence and more.”
UPDATE (April 29, 19:19 UTC): Adds paragraph on intersubjective bifurcation.