EigenLayer (EIGEN) Responds to Backlash with Additional 28M Coin Airdrop: Latest Crypto News

• EigenLayer, a restaking protocol, is set to airdrop an additional 28M EIGEN tokens following backlash over its first airdrop.
• The initial airdrop was criticized for being restrictive, leading to the announcement of an additional airdrop for users who interacted with the protocol before April 29th.
• The second wave of claimants will receive a minimum of 100 EIGEN, with the cut-off point designed to prevent Sybil farms from abusing the protocol.

EigenLayer announces an additional airdrop of 28M EIGEN tokens following criticism over its first airdrop. The move aims to reward early users and prevent protocol abuse.

The Backlash Over the First Airdrop

Users who felt left out of the first airdrop criticized EigenLayer’s “stakedrop” program. The main points of contention were the nontransferable token structure, a smaller-than-expected 15% community allocation, and “aggressive” geo-blocking and anti-VPN measures. These measures excluded users from 30 countries, including the United States, Canada, China, and Russia, from participating in the airdrop.

EigenLayer’s Response to the Backlash

In response to the backlash, EigenLayer announced plans to include more of its test net users that may have been omitted from the airdrop. The Eigen Foundation stated that users could claim their tokens on May 10th, but these tokens are non-transferable until an undisclosed date. This control was put in place to ensure that key features, including payments and slashing parameters, were “well established” before EIGEN became transferable among users.

Questions Over EIGEN Tokenomics

Another cause for concern is EigenLayer’s shaky tokenomic structure. Only 45% of its total supply is distributed to the community, with 15% being made accessible with airdrops. This has disincentivized users, seeing minimal eigen returns compared to the Ethereum they have devoted to staking. However, Eigen has stated that this was intentional, as part of a strategy to prevent Sybil-neutral distribution.

Conclusion

Despite the controversy, EIGEN perpetual futures contracts are currently trading for $10 on the derivatives market, valuing the latest airdrop at $280 million. However, this price could change significantly before the token’s official distribution event on May 10. The backlash and subsequent additional airdrop highlight the importance of clear and fair token distribution strategies in maintaining community trust and engagement in the crypto space.