Eigenlayer, a staking protocol on the Ethereum network, has recently released a white paper introducing its proposed token called EIGEN. This token aims to be used in various applications that require intersubjective agreement, such as prediction markets, storage services, and gaming virtual machines. It is worth noting that certain jurisdictions, including the United States and Canada, will not be included in the upcoming airdrop of the token.
Eigenlayer operates as a blockchain network that utilizes staked Ether (ETH) as its native coin. Users who have staked Ether on Ethereum can choose to “restake” it on Eigenlayer and earn additional rewards by validating transactions on both networks. The developers argue that this approach is more secure compared to using a separate token, as it allows Eigenlayer to inherit the security of Ethereum instead of starting from scratch.
According to the white paper, staked Ether will continue to play a crucial role in forming consensus for on-chain verifiable data, such as transaction validity. There is certain data that cannot be verified on-chain but can still be easily confirmed by individuals. This includes statements like “1 BTC = 1 USD.” Eigenlayer believes that its new EIGEN token will be useful in reaching consensus on these types of statements, which it refers to as “high concordance with intersubjectively attributable faults.”
EIGEN is built upon the work of Augur, a platform that introduced the REP token for recognizing intersubjective agreements in prediction markets. Eigenlayer, Intends for EIGEN to be a universal intersubjective agreement token with applications beyond prediction markets. The team further suggests that the EIGEN token can be isolated from decentralized finance (DeFi) apps during forks, can measure the cost of social consensus, and can compensate users who lose EIGEN tokens due to faults.
The team envisions a wide range of applications for the EIGEN token, including prediction markets, storage services, cloud microservices, gaming virtual machines, order-matching engines for exchanges, databases, AI training, and more. As for the token distribution, 15% of the total supply has already been allocated to current users who have restaked ETH. An additional 15% will be given to participants in “Season 2,” the timeframe of which has not yet been disclosed.
After the release of the white paper, some users speculated that Eigenlayer might be planning an airdrop of the EIGEN token. This speculation arose from a reported link to a “claims” webpage set up by the Eigenlayer team, which produced a 404 error when accessed from certain regions, including the US. It is believed that the airdrop will exclude the US, Canada, a portion of Africa and Asia, and VPN users.
One pseudonymous developer, Chudnov, raised concerns about a potential “yield crisis” for Eigenlayer, as the value of assets locked on the platform is growing faster than necessary to secure the network. Restaking on Eigenlayer has been cited as one of the main drivers of new assets entering the DeFi ecosystem, as reported by QuickNode and Artemis on April 18.
Eigenlayer has introduced the EIGEN token through its white paper, aiming to facilitate intersubjective agreement in various applications. The token’s distribution is ongoing, with current users who restake ETH and participants in Season 2 receiving allocations. There is speculation regarding a potential airdrop, and concerns have been raised about the sustainability of the network’s asset value growth. Eigenlayer hopes that the EIGEN token will serve as a universal work token for tasks that lack objective attributability.
The EIGEN token’s potential to compensate users who lose tokens due to faults is a reassuring aspect. It adds an extra layer of security and protection for token holders. 🔒
Augur’s work on the REP token was already impressive, and now Eigenlayer is taking it to the next level by creating a universal intersubjective agreement token. This has great potential!
The white paper talks a lot about reaching consensus on statements, but how effective will this EIGEN token really be?
I’m excited to see Eigenlayer’s vision for the EIGEN token come to life. The team has put a lot of thought into its potential applications, which makes me even more optimistic!
Restaking on Eigenlayer might be driving new assets to DeFi, but it’s also contributing to the asset bubble. Brace yourselves for the crash. 💥💸
The link to the claims webpage producing a 404 error? That doesn’t instill confidence in the project.
Restaking on Eigenlayer might be driving new assets to DeFi, but what about the long-term sustainability of the network? Seems like a bubble waiting to burst.
The EIGEN token has the potential to revolutionize various sectors, from prediction markets to AI training. Its versatility is truly impressive! 🌐
The EIGEN token’s potential to be isolated from DeFi apps during forks is a valuable feature. It helps ensure the stability and reliability of the token’s functionality. 💪