EigenLayer, a restaking protocol built on Ethereum, has announced the second season of its ‘stakedrop’ program. The event will see the distribution of 86 million EIGEN tokens to stakeholders.
This will include: stakers, node operators, ecosystem partners, and community members.
86 Million EIGEN Tokens Are Being Distributed For Users Active Between March 15 – August 15 This Year
Eigenlayer's just announced 2nd stakedrop details.
It would make waves on CT if $EIGEN were tradable.
– The restaking airdrop APY is ~3%, based on a $3.2 USD price per EIGEN, with around 5% of the total supply allocated for restakers. (thx @0x_antifragile for calculations)
— Ignas | DeFi (@DefiIgnas) September 5, 2024
Stakeholders active on EigenLayer between March 15 and August 15 will be eligible for the stakedrop. Distribution is set to begin on or before September 17.
The second season follows the initial launch of the protocol’s native token (EIGEN) in April, alongside the first stake drop. Eligible stakeholders will be able to claim their stake drop starting September 17.
EigenLayer allows users to deposit and stake Ethereum (ETH) from various liquid staking tokens. It then allocates those funds to secure third-party networks or actively validated services (AVSs).
The 86 million EIGEN token allocation for the stakedrop’s second season is around 5% of the fully diluted supply of 1.67 billion tokens. Of this amount, 70 million tokens have been allocated to stakers and active operators during the Season 2 period.
Each user’s allocation is calculated by their pro-rata share of ETH staked.
Of the token supply, 10 million EIGEN tokens are set aside for other contributors to the EigenLayer ecosystem. These include AVSs, rollups, liquid staking protocols, and rollup-as-a-service providers.
For the community allocation, 6 million tokens have been set aside for open-source contributors and early advocates. EigenLayer is using a social identity protocol for the aforementioned community members to claim their tokens.
This will be done by linking their wallet addresses to their social handles via the Eigen Foundation’s official verification site six days from now, on September 11.
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TVL For EigenLayer Down By Nearly $10 Billion – Are Investors Done Farming Stakedrops?
On the downside for EigenLayer, the protocol has recently experienced net outflows. Those outflows have resulted in a sharp reduction in its total value locked (TVL), by almost 50%. From an all-time high of $20.1 billion in June, the TVL has decreased to around $11.5 billion.
EigenLayer isn’t alone in experiencing large outflows. This has been an issue across the liquid restaking sector. Other projects, such as Renzo, Puffer, and Swell, have also recently reported significant declines in TVL.
On the flip-side, Symbiotic, another restaking protocol and competitor to EigenLayer, has seen an increase in its TVL, crossing $1.5 billion since its rollout in June. However, Symbiotic have not yet announced a token launch.
As previously mentioned, EigenLayer has 1.67 billion tokens in supply. Although these tokens are not tradable, pre-markets such as Hyperliquid value each token at roughly $2.7, giving EigenLayer a fully diluted valuation market cap of $4.5 billion.
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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.
