EigenLayer, a restaking protocol, plans to airdrop 86 million EIGEN. Here’s everything that you need to know about the upcoming Eigen airdrop.
Much has changed in Ethereum since its launch. Indeed, there have been improvements along the way—from Homestead to London, Istanbul, and, latest, the Merge; Ethereum is now much better, faster, and more efficient.
All of these upgrades have profoundly impacted the first smart contracts platform. Of them all, the Merge was perhaps the most important – it effectively marked the transition from Ethereum 1.0 to Ethereum 2.0
The shift from proof-of-work (an energy-intensive model) to a proof-of-stake (an energy-efficient system) was monumental and a testament.
With Ethereum now using a staking system, relying on validators, not miners, early whales stood a chance to dominate and tighten their grip.
The Merge And Ethereum Proof-of-Stake
To participate in the consensus and validate all transactions, prospective validators must stake at least 32 ETH.
With each ETH trading for at least $2,300 at spot rates, this is obviously out of reach for a larger majority.
This is where platforms like EigenLayer come in, filling the gap.
But what precisely does it do?
EigenLayer is a liquidity re-staking platform. It allows anyone to participate in consensus, even locking up 0.1 ETH.
The goal is to combine all contributions, funnel the same through Ethereum, and share block rewards and associated fees.
Think of EigenLayer as a “validator pool” akin to the “mining pool” common in proof-of-work systems like Bitcoin.
However, unlike Lido, EigenLayer allocates this stake to secure third-party networks.
Think of staked ETH being used to secure other platforms.
Those who stake ETH (or any other supported token) receive EIGEN, representing their locked portions.
EigenLayer Season 2 Stakedrop:
This week, EigenLayer made a major announcement.
They will distribute 86 million EIGEN to stakeholders via a “stakedrop.”
But here’s a catch.
Beneficiaries will be those who engaged with the EigenLayer between March 15 and August 15.
However, that won’t be enough.
There will be social proof to prevent bots.
Accordingly, members must verify their social identity by linking their wallet addresses to their social handles via the Eigen Foundation verification site by September 11.
The stakedrop will begin anytime before or on September 17. EIGEN tokens received will depend on their pro-rata share of staked ETH.
The 80 million EIGEN represents just 5% of the fully-diluted supply. A bigger chunk, or 70% of the supply, has been allocated to stakers and active operators.
The second stakedrop follows another distribution early this year, in April. Like in this stakedrop, the goal is to reward loyal ETH stakers using the EigenLayer.
EIGEN is yet to be listed on major centralized or decentralized exchanges.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
