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EigenLayer launches EIGEN Airdrop token, tokens remain non-transferable
Last Updated: May 11, 2024 5:11am EDT | 2 minute read
Ethereum restake protocol EigenLayer has begun the token claim process, commonly referred to as an “airdrop,” for Season 1 Phase 1 rewards.
According to a recent blog post by the protocol development team, users eligible for the new EIGEN token can now acquire it through the application process after a few weeks of waiting.
However, it is important to note that EIGEN tokens are currently non-transferable, meaning users cannot sell or trade them.
The EIGEN token will become transferable in the future
The blog post also mentions that the EIGEN token will become transferable once the development team implements new features in the coming months.
The tentative target date for these deployments is September 30th.
It is vital that users claim their tokens before the claims process closes on September 7, as any tokens not claimed after that date will not be distributed.
According to EigenLayer documentation, the EIGEN token is not available to users in over 30 jurisdictions, including the United States, Russia, China, and Canada.
Additionally, most VPN server addresses are not permitted to be used for token claims.
The current application process has unlocked 6.05% of the total EIGEN token supply and an additional 0.7% will be unlocked in mid-June during “Phase 2”.
At that point, users of applications like Kelp, Pendle, Equilibrium and similar apps will be able to request their tokens.
The ongoing airdrop is primarily aimed at users who restake Ether or its liquid derivatives on EigenLayer before March 15.
Users holding liquid restaging tokens (LRTs) can also claim their rewards now, as long as their assets do not fall under “Phase 2.”
Additionally, users who restaged on EigenLayer between March 15 and April 29 are eligible to claim 100 bonus tokens immediately, with the majority of their claims becoming available in mid-June alongside other Phase 2 participants.
The EIGEN airdrop has sparked controversy within the decentralized finance (DeFi) community. Leandro Schlottchauer, co-founder of Kuyen Labs, said it could be one of the last “life-changing air launches.”
In contrast, many EigenLayer users criticized the airdrop for its ban on VPN servers, the distribution of non-transferable tokens, and the perceived short snapshot period.
LayerZero Labs will exclude Sybil farmers from the Airdrop
As airdrop season rages on, LayerZero Labs, a renowned cross-chain interoperability protocol, has he promised to address the issue of Sybil farmers ahead of its highly anticipated airdrop.
The project said it will conduct an internal investigation to identify and exclude Sybil farmers from receiving allocations in its future token generation event.
Additionally, the project plans to launch a reward program, offering a bonus of 10% of the expected token allocation to bounty hunters who identify additional sybil users.
LayerZero Labs recently completed the first snapshot for its highly anticipated airdrop.
In December, the project announced its plans to distribute tokens to early adopters in the first half of 2024.