Wang Bomb is coming, and the article sorts out the key information of EigenLayer Airdrop

Original | Odaily Planet Daily

Author | Azuma

In the early morning of April 30, Beijing time, EigenLayer, the core project of the re-stake track, officially announced the coin issuance and airdrop plan - ** intends to officially open the Airdrop application of the Token EIGEN on May 10. **

Or due to the rapid fermentation of the above information on social media last night, EigenLayer simply “did not hide” and directly threw out the official announcement. Next, Odaily will combine all the existing official materials such as white paper, documents, announcements, etc., to extract all the key information about the EIGEN Airdrop for you.

EIGEN Token Utility

According to Eigenlayer’s White Paper published on GitHub, EIGEN is positioned as a generic, verifiable “work Token” unlike common governance tokens. “Working Tokens” refer to utility tokens that can be staked by participants to perform certain work (such as blockchain verification), and if a participant violates a specific work commitment, the stake “working tokens” may be subject to slashing penalties.

In the context of EIGEN, EIGEN staking aims to be a functional complement to ETH re-staking, introducing a new mechanism to deal with subjective “errors”, such as behavior that is not recognized on the on-chain but still needs to be punished. In other words, Eigenlayer will support the complementary stake model between ETH and EIGEN, ETH stake mainly used to solve objective Consensus problems (which can be roughly understood as whether Node is doing bad things), and EIGEN stake mainly used to solve subjective economic efficiency related problems (which can be roughly understood as Node whether things are done reasonably or not). **

With EIGEN’s stake, EigenLayer ensures that a full range of verification capabilities are maintained without fork Ethereum Mainnet Consensus, and is expected to unlock a range of robust and cost-effective active authentication services (AVS) that were previously impossible, such as activating new innovations in Oracle Machine, DA, databases, AI, gaming Virtual Machine, intent and order matching, MEV engine, prediction market, longer and more.

Token supply and distribution mechanism

According to The Block’s disclosure, the total supply of EIGEN Tokens at genesis will be 1.67 billion, and the specific distribution is as follows.

45% of the EIGEN Token will be distributed to the community, which will be further subdivided into three directions: Airdrop (15%, more on this section below), Community Plan (15%), and Ecosystem Development (15%).

**29.5% of the EIGEN Token will be distributed to investors, 25% of the EIGEN Token will be distributed to early contributors, and the share of investors and early contributors will be unlocked over three years, first fully locked and then gradually released at a rate of 4% per month over the next two years.

Detailed explanation of the Airdrop mechanism

For ordinary users, the most concerned issue at the moment is the Airdrop situation.

Eigenlayer has now opened a query page for the first phase of the first phase of the Airdrop quota, and users can directly check the Airdrop shares they can get.

As mentioned above, **Eigenlayer will distribute 15% of EIGEN Tokens in the form of Airdrops, and the first quarter Airdrop plan announced in this issue will distribute 5% of EIGEN Tokens. Snapshot of the first quarter Airdrop program is March 15, 2024, and the Airdrop claim cycle is from May 10 to September 7. **

Season 1 will be divided into two phases, with Phase 1 allocating 90% Airdrop distribution to users who have re-stake directly through EigenLayer or re-stake through Liquidity re-stake protocol, and Phase 2 will allocate 10% to users who interact with EigenLayer in more complex ways (e.g. Pendle,Airdrop Equilibrium), the second phase of the Airdrop is expected to begin a month later. **

As for the subsequent Season 2 and potential long Season Airdrop plans, Eigenlayer only mentioned that Season 2 is underway, and users need to pay attention to official channels for specific information to be announced in the future.

EIGEN Circulation Issues

It is worth emphasizing that EigenLayer has clearly mentioned in the White Paper that in order to achieve full decentralization, **EIGEN Token will be non-transferable at the initial stage of claiming. **

According to the official documentation, it is expected that this non-transferable status will continue for several months (in the coming months)**, and the transfer function will be activated after “the community has fully discussed EIGEN’s supplementary stake mechanism”, “activated AVS’s payment and slashing mechanism”, “Token is widely distributed” and other matters.

What is the EIGEN valuation?

As the core and underlying project of the stake track, EIGEN’s valuation obviously has a very broad imagination short - especially under the premise that ether.fi and other upper-level LRTs protocol have billions of dollars in FDV.

At present, Aevo has listed EIGEN in pre-market trading, which is tentatively trading at $10.3 as of the time of writing, which may be a potential reference.

At present, since the market on Aevo is only open for a few hours and the volume of pre-market trading is relatively low, this value does not accurately represent the real performance of EIGEN after it goes live and unlocks the transfer function in the future, and the answer to everything may not be revealed in a few months.