EigenLayer Expands Airdrop by 28M EIGEN After User Criticism

In response to community backlash, Ethereum restaking protocol EigenLayer has announced an expansion of its airdrop program. 

The adjustment will see an additional 28 million EIGEN tokens distributed to approximately 280,000 wallet addresses. This move comes after the protocol’s users criticized the initial airdrop plan for its restrictive measures and limited community allocation.

The Eigen Foundation publicized the decision to increase the token distribution through a post on X and followed up with further details in a recent blog entry. This revised airdrop includes both the initial claimants from the first phase and new recipients who interacted with the protocol up to April 29. 

Updates on the EIGEN Stakedrop pic.twitter.com/1cwSForJnx

— Eigen Foundation (@eigenfoundation) May 2, 2024

Notably, the value of these additional tokens is considerable, given the current trading price of $10 per EIGEN on the derivatives market. As per Aevo data, the total estimated worth of the airdrop is around $280 million.

Distribution Details and Token Non-transferability

According to their blog post, EigenLayer has outlined specific details regarding the distribution of tokens to the eligible wallets. Season 1 participants are set to receive a minimum of 110 EIGEN each, while those in Season 2—who engaged with the platform between March 15 and April 29—will receive at least 100 EIGEN. 

The EIGEN tokens have yet to be available on the market, and their official distribution is scheduled for May 10. However, the tokens will be non-transferable initially, a measure EigenLayer states is necessary to ensure the stability of the protocol’s key features, including payments and slashing parameters.

Further clarity was provided on the conditions of non-transferability, stating that private investors and team members would face a one-year lock-up period once the tokens become transferable to the community. Following this phase, their tokens will unlock at a rate of 4% per month, concluding three years after the transferability date.

Addressing Exclusions and Future Plans

The initial phases of the airdrop drew attention to the need to exclude users due to stringent geo-blocking and anti-VPN measures, which affected potential claimants from over 30 countries, including the United States, Canada, China, and Russia. In response to these issues, EigenLayer has committed to revising its allocation processes to include more participants from its testnet phase.

The foundation has indicated that adjustments to missed testnet user allocations will be included in Phase 2 of Season 1, with more details to be provided in the coming weeks. This update aims to rectify any oversights in the initial airdrop process and ensure broader inclusion.

In addition to addressing immediate community concerns, EigenLayer has laid out a roadmap for unlocking investor tokens in the future. According to their latest communications, these tokens will begin to vest following the start of token transferability, which is anticipated to occur after September 30, 2024, as new features are implemented on EigenLayer’s mainnet.