EigenLayer airdrop is facing backlash due to non-movability of tokens and jurisdictional blocking.
Details surrounding the long-awaited EigenLayer airdrop were revealed yesterday to much fanfare, but also a ton of criticism.
The plan explains that 45% of the 1.67 billion token supply at launch will be allocated to the community, with one-third of them in the form of airdrops. The airdrop will be split into two parts, with a focus on rewarding those who have staked the protocol, split into multiple seasons, including the first season (5% distribution of supply).
A variety of concerns were highlighted, but the most important one was the lack of transferability of the token when it was first launched. EigenLayer said that once the token is launched, it will be non-transferable for “several months” to allow sufficient time for decentralization and to foster community consensus on the token’s utility and governance.
However, concerns were raised that this could have a negative impact on those who receive the airdrop. “The EigenLayer team and investors get 55%, but stakers only get 5% and even that is initially non-transferable.” Posted Cryptocurrency trader known as CoinMamba by X.
It’s no surprise that this is a controversial topic, as it was a big issue during February’s Starknet airdrop.
When the Starknet token was activated for trading, there were times when investors and core contributors would initially unlock their tokens after just a few weeks. This happened because the token was technically created a year before it became tradable. Even though the tokens were not actually activated, they quietly proceeded with their investor vesting schedule. However, after its own backlash, the investor unlock was moved back.
EigenLayer did not respond to questions asking whether investor token allocations would begin vesting from the moment of token creation, or whether community tokens would become transferable.
face more heat
Another major criticism is that Airdrop not only blocks many countries, including the US and Canada, but also VPN users. This is believed to be due to concerns about regulatory risk, but some users complain It is inconsistent that the use of the platform was not blocked but excluded from the airdrop.
Others criticized the size of the airdrop, given that most of the tokens went to investors and early contributors. But this is very common with airdrops these days. part assert “Universal Intersubjective Work Token” and “Intersubjective Fork“It’s overly complicated.
There was also delirium Relates to airdrop eligibility for Pendle users. When it was first announced, cryptocurrency users thought that those who indirectly participated in EigenLayer through Pendle would not be able to participate in the airdrop. Eigen Foundation clarify Pendle users will receive 10% of the initial airdrop, which is equivalent to 5% of the token supply. However, the price of Pendle, which had already fallen, failed to rebound and is currently down 16% since the airdrop announcement.
Impact on the future of the project
Although many airdrops have been criticized, the response to EigenLayer’s token plan has had a huge impact.
There has been a significant surge in withdrawals on the platform in the last 24 hours. More than 7,000 withdrawals were initiated, according to data from Dune Analytics. According to DefiLlama, this resulted in approximately 150,000 ETH ($457 million) being removed from the platform.
On the other hand, the total value locked in the project’s smart contracts stands at $15.6 billion, so it hasn’t taken much of a hit for now.
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