EigenLayer, a leading restaking protocol built on Ethereum, has officially announced the launch of its native token, EIGEN, scheduled for May. This highly anticipated token will be distributed by the Eigen Foundation, an independent non-profit organization. With an initial total supply of 1.67 billion tokens, the launch represents a major development within the decentralized finance (DeFi) and restaking ecosystem.
The protocol has gained substantial traction, securing over $16 billion in staked ether (ETH), reflecting strong community and investor confidence. The introduction of the EIGEN token aims to further decentralize the network, enhance security, and incentivize participation.
Token Distribution and Allocation
The Eigen Foundation has designed a comprehensive token distribution plan to ensure long-term growth and fair community involvement. A significant portion, 45% of the total token supply, is dedicated to the EigenLayer community. This allocation is strategically divided into three equal segments:
- Stakedrops (15%): Distributed directly to users who participate in the platform’s staking activities.
- Community Initiatives (15%): Reserved for programs, grants, and projects that drive community engagement and development.
- Ecosystem Development (15%): Aimed at fostering the broader growth of the EigenLayer ecosystem and supporting new projects building on it.
The remaining tokens are allocated to investors (29.5%) and early contributors (25.5%). To align with long-term network health, these allocations are subject to a strict three-year lockup period. The tokens will be completely locked for the first year, followed by a linear monthly release of 4% over the subsequent two years.
Understanding the Stakedrop
A "stakedrop" is EigenLayer's term for its community airdrop, which rewards users based on their historical staking activities on the platform. The distribution will occur across multiple seasons to ensure broad and ongoing participation.
The first season has already been defined using a snapshot of user staking activity taken on March 15, 2024. This initial phase will distribute 5% of the total EIGEN token supply to eligible users.
The claiming process for Season 1 is structured in two parts:
- 90% of the allocated tokens will be claimable starting May 10, with a 120-day window for users to claim their rewards.
- The remaining 10% will be available in a second phase of Season 1, scheduled to begin approximately one month later.
This phased approach is designed to encourage sustained engagement and reduce immediate sell pressure on the market. For a deeper understanding of how to participate in such opportunities, you can explore more strategies for engaging with new token launches.
Introducing Intersubjective Forking
A key innovation launching alongside the EIGEN token is a novel cryptoeconomic security mechanism termed "intersubjective forking." This system is designed to address a critical challenge in blockchain security: punishing malicious behaviors that are not instantly verifiable on-chain.
Examples of such behavior include data withholding by oracles or other services (known as Actively Validated Services or AVSs) operating on top of EigenLayer. While traditional slashing can punish objective, on-chain misdeeds, intersubjective forking handles more complex, disputable actions that require community consensus to adjudicate.
This mechanism complements the protocol's existing security model, which involves slashing restaked ETH for clear, objective violations. By introducing EIGEN and intersubjective forking, EigenLayer can secure a wider range of services without placing additional slashing burdens on the underlying Ethereum validators.
The Role of the EIGEN Token
The EIGEN token is introduced as a "Universal Intersubjective Work Token." Its primary function is to work alongside ETH, which is considered the "Universal Objective Work Token" within the EigenLayer ecosystem.
Upon launch, users will be able to stake EIGEN tokens to provide security for EigenDA, EigenLayer's native data availability layer. This staking mechanism is expected to be extended to other AVSs in the near future, creating a robust and versatile security marketplace.
The launch of EIGEN is a pivotal milestone for EigenLayer, solidifying its infrastructure and enabling the next phase of its evolution within the rapidly advancing restaking landscape.
Frequently Asked Questions
What is EigenLayer?
EigenLayer is a restaking protocol on Ethereum that allows users to restake their staked ETH to secure additional applications and services built on the network, often called Actively Validated Services (AVSs). This maximizes the utility and security of capital staked on Ethereum.
How can I claim my EIGEN tokens from the stakedrop?
If you were staking on EigenLayer before the March 15, 2024 snapshot, you are likely eligible for the Season 1 stakedrop. 90% of your tokens will be claimable on May 10 via the official Eigen Foundation portal, with a 120-day window to claim. The remaining 10% will be available a month later.
What is the difference between objective and intersubjective slashing?
Objective slashing punishes behaviors that are automatically and verifiably detectable on-chain, like double-signing. Intersubjective forking is designed for offenses that are not immediately obvious on-chain but are malicious, such as withholding data; it relies on a community-driven process to reach consensus and penalize bad actors.
What is the total supply of EIGEN tokens?
The total initial supply of EIGEN tokens at launch is 1.67 billion. The Eigen Foundation has allocated 45% to the community, 29.5% to investors, and 25.5% to early contributors.
Are the tokens for investors and team locked up?
Yes, tokens allocated to investors and early contributors are subject to a three-year lockup. They are fully locked for the first year, after which they are released gradually at a rate of 4% per month for the following two years.
What can I use the EIGEN token for?
The primary initial use case is to stake EIGEN to secure services within the EigenLayer ecosystem, starting with its data availability layer, EigenDA. Stakers will earn rewards for providing this security. It also serves a governance function within the intersubjective forking mechanism. To view real-time tools for managing staking portfolios, many users turn to established platforms.