Cryptocurrency community divided by Eigenlayer’s airdrop
Key Takeaways
- Eigenlayer announced an airdrop of 15% of the total supply of 1.67 billion EIGEN tokens.
- The airdrop’s amount, documentation, non-transferability, linear distribution model, and geographic restrictions have caused frustration among the community.
- In contrast, some experts advocate this strategy as tolerant of fraud and effective.
The Eigenlayer airdrop was recently announced. It aroused mixed reactions among users.
Eigenlayer is the second largest re-staking protocol with a total value locked (TVL) of $15.67 billion. The airdrop plan was detailed in a blog post on April 29th.
Did you know?
Do you want to become smarter and richer with cryptocurrency?
Subscribe – We post new cryptocurrency explainer videos every week!
After launch, many users You contribute your staked Ethereum (ETH) to the protocol in hopes of receiving future rewards.
The foundation announced this: 1.67 billion tokens, 15% of EIGEN’s total supply, will be distributed to the community. In the initial phase, 5% will be awarded to early participants in Season 1, with the remainder scheduled for future seasons.
However, this allocation strategy I didn’t get along with everyone. some community members I find the proportion of tokens to be inappropriate and the documentation confusing.
user criticism Airdrop structure for rendering tokens Non-transferable until an unspecified future date. However, the Eigen Foundation stated that this measure ensures that key features of the protocol, such as the payment system and cut parameters, are stable before enabling token transfers.
Moreover, the airdrop sparked additional controversy. linear distribution model, Because they prefer larger stakeholders. One user said::
Frankly the linear approach is stupid. Basically, you make 1000-2000 Eigen stakers happy by sacrificing 100,000 who will get peanuts. The reality is that those native whales also have no interest in loyalty and will leave as soon as a better opportunity presents itself. (edited)
Dissatisfaction grows Because there are geographic restrictions Users from 30 countries, including the United States, Canada, China, and Russia, cannot claim EIGEN tokens. Moreover, Eigenlayer has enforced these restrictions through the following measures: Block VPN.
In contrast, Some industry experts believe. that much The criticism may be exaggerated. Henrik Andersson, Chief Investment Officer at Apollo Capital, argues: The 15% token allocation to the community is actually generous..
He also The linear distribution model is “clearly the fairest method and eliminates Sybil attacks..”
Despite mixed reactions to the airdrop strategy, the detailed plan reflects a balance between rewarding reinvestors and maintaining protocol stability.
In related news, Chudnov of the 3Jane cryptocurrency derivatives protocol recently posted a thread suggesting that Eigenlayer’s rapid growth could lead to a yield crisis.
With a master’s degree in Economics, Politics, and Culture in East Asia, Aaron wrote a scientific thesis analyzing the differences between Western capitalism and collective capitalism after World War II.
With nearly 10 years of experience in the fintech industry, Aaron understands all of the biggest issues and challenges cryptocurrency enthusiasts face. He is a passionate analyst who delivers data-driven and fact-based content as well as speaking to both Web3 natives and industry newcomers.
Aaron is our go-to guy for all things digital currency. With a huge passion for blockchain and Web3 education, Aaron is working to transform the space as we know it and make it more accessible to complete beginners.
Aaron has been quoted in several popular media outlets and is a published author himself. In his spare time, he enjoys researching market trends and looking for the next supernova.
