DeFi
EigenLayer users can claim tokens now, but won’t be able to cash them out for months – DL News
- EigenLayer users began claiming a share of the protocol’s 1.6 billion tokens on Friday.
- But the tokens will not be transferable for several months, which makes their immediate valuation difficult.
EigenLayer users who began claiming a share of the protocol’s 1.6 billion tokens on Friday will have to wait several months before they can cash out.
“EIGEN will be unlockable once new features become available and further decentralization is achieved,” the Eigen Foundation said in a blog post. “These features are targeted for mainnet by September 30, 2024.”
Friday’s drop was among the most anticipated of the year. Since EigenLayer began its phased rollout last June, the protocol has attracted $15 billion in user deposits, making it the second largest project in the world of decentralized finance.
EigenLayer pioneered the concept of “takeover,” in which capital and hardware used to run Ethereum are simultaneously used to run other protocols.
Although critics have criticized the project presentation new risk to the Ethereum ecosystem, Eigen Labs has moved to address their concerns and has the potential to greatly facilitate the launch of new protocols. Earlier this year, the company announced that it had raised $100 million from venture capital firm Andreessen Horowitz.
Just over 6% of the EIGEN supply was available for claim on Friday. In total, 15% of the token supply will be available to claim by EigenLayer users in a series of events that parent company Eigen Labs has called “Stakedrops.”
The remainder of the token offering was reserved for company employees, investors, and the Eigen Foundation, a new “shareholderless entity dedicated to accelerating the growth of the EigenLayer ecosystem.”
For months, Eigen Labs evaded questions about a possible airdrop, telling users, “there is no token.”
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However, users weren’t buying it. Eigen Labs had all but hinted at an upcoming token when it began distributing “points” to depositors, and cryptocurrencies worth billions of dollars flowed into the protocol.
But some were furious when the company detailed plans for the EIGEN token. Among other things, they challenged the decision to ban users from the United States, China and other countries from claiming the EIGEN they had earned.
EigenLayer responded to the criticism by awarding most users an additional 100 EIGEN tokens.
EigenLayer Points were recently trading at $0.20 on the Whales Market. On Aevo, based on EIGEN perpetual were trading at just under $9. If all 1.6 billion tokens circulated at this price, it would put EIGEN’s market capitalization at around $15 billion.
Although token swapping is banned outright for the next two months, users can stake or lock their tokens immediately, according to the Eigen Foundation.
As with Ethereum staking, EIGEN locking is part of a process in which users effectively lend capital to secure a blockchain-based protocol in exchange for a modest reward.
As of Friday, users could only bet on one protocol based on EigenLayer: EigenDA built by Eigen Labs. Individuals who choose to stake their EIGEN will be eligible for future stakes, according to the Eigen Foundation.
The second phase of the initial airdrop will begin in mid-June and will allow users who have accumulated points through protocols like Pendle to claim EIGEN.
The claim window for the first EigenLayer airdrop will close on September 7.
Aleks Gilbert is DL News‘ DeFi correspondent based in New York. You can contact him at aleks@dlnews.com.