EigenLayer, a restaking protocol, is facing criticism over its initial airdrop, prompting the foundation to distribute an extra 100 EIGEN tokens to 280,000 qualifying wallet addresses. The protocol had earlier announced that it would allocate 15% of its total supply to the community, leading to backlash due to restrictive provisions in the airdrop program. To address the concerns raised by users, EigenLayer announced on May 2 that users who interacted with the protocol before April 29 would receive an additional airdrop, along with the original claimants.
In a follow-up blog post, Eigen clarified that users who claimed tokens during the first wave will receive a minimum of 110 EIGEN, while the second wave of claimants, who interacted with the protocol between March 15 and April 29, will receive a minimum of 100 EIGEN. The decision to set a cut-off point on April 29 was aimed at preventing Sybil farms from abusing the protocol and influencing the community. The backlash stemmed from EIGEN’s nontransferable token structure, a smaller-than-expected community allocation, and strict geo-blocking and anti-VPN measures.
Users from 30 countries, including the US, Canada, China, and Russia, were barred from participating in the airdrop, leading to discontent among the community. EigenLayer has mentioned that it will work on including more test net users who may have been overlooked in the airdrop. The tokens claimed during the first airdrop will be available for users to access on May 10, with restrictions on transferability until a later date to ensure the stability of key protocol features. Private investors and team members will be subject to a lock-up period before the token becomes fully transferable.
Concerns have also been raised about EigenLayer’s tokenomic structure, with only 45% of the total supply being distributed to the community, and 15% being made available through airdrops. This has led to minimal eigen returns for users compared to the Ethereum they have staked. While EigenLayer has defended this intentional disincentivization, community feedback has prompted a revision in the distribution strategy. Despite the concerns raised, Eigen’s community strength has played a crucial role in attracting investments and establishing the protocol’s position in the market.
Prior to the official token distribution event scheduled for May 10, EIGEN perpetual futures contracts are trading for $10 on the derivatives market, valuing the latest airdrop at $280 million. It is essential to note that the price of EIGEN could fluctuate significantly before the distribution event, reflecting the dynamic nature of the crypto market. EigenLayer’s response to community feedback and efforts to address concerns indicate a commitment to building a sustainable and inclusive ecosystem for its users.
