EigenLayer Airdrop: Planned Event Sparks Controversy Over Fair Distribution

Crypto News – The crypto industry was abuzz with excitement as EigenLayer, a pioneering restaking technology, revealed its native token’s forthcoming airdrop. The airdrop is planned for May by the crew. The distribution’s specifics, however, have caused a great deal of discontent and brought attention to a persistent problem with blockchain projects’ allocation procedures.

EigenLayer Airdrop: Planned Event Sparks Controversy Over Fair Distribution

EigenLayer has enabled users to deposit and withdraw Ethereum from a variety of liquid staking tokens since its introduction in June of last year. Eventually, according to data from DefiLlama, it grew to be the second-largest DeFi protocol, with $15.952 billion in total value locked.

The team introduced the native token, totaling 1.67 billion, to enhance the EigenLayer ecosystem. The independent, non-profit Eigen Foundation allocated 45% of these tokens to community-related activities. These include stakedrops, community initiatives, and ecosystem development.

Community’s Initial Enthusiasm Fades to Reaction

When the community learned that just 15% of the tokens would be awarded through a “stakedrop,” as EigenLayer referred to it, their initial excitement faded. In particular, users will only receive 5% of the total token supply during the first distribution season, which will be determined by a snapshot of their staking activity as of March 15, 2024. To make matters more frustrating, 90% of this allocation is not instantly transferable and cannot be claimed until May 10.

This distribution stands in sharp contrast to the 55% of tokens reserved for the project’s backers and investors. The cryptocurrency community has expressed strong disapproval of this discrepancy, which is indicative of a larger discussion about token distribution fairness.

So the EigenLayer team and investors are getting 55%, but stakers are getting only 5%, and even that will not be transferable at the beginning. The amount of greed crypto developers and VCs are exhibiting just keeps surprising me every time,

CoinMamba, Crypto investor