TL;DR
- EigenLayer has become embroiled in controversy over its EIGEN token airdrop due to mixed reactions in the community.
- The protocol will allocate 15% of the tokens to the community, which is the amount that sparked the crossfire of criticism.
- On one hand, some users express frustration over the allocation and restrictions. While others praise the transparency and defend the protocol’s generosity.
EigenLayer, one of the most significant protocols in the Ethereum ecosystem, is in the spotlight due to its announced EIGEN token airdrop and the mixed reactions that have arisen among members of the crypto community.
EigenLayer is known for its focus on Ethereum restaking and its $15.67 billion TVL. It announced that it would allocate 15% of its total supply of EIGEN tokens to the community. However, this news was not received without controversy.
So EigenLayer team and investors are getting 55% but stakers are getting only 5% and even that will not be transferable at the beginning.
The amount of greed crypto developers and VCs are exhibiting just keeps suprising me every time..
— CoinMamba (@coinmamba) April 29, 2024
The airdrop, described as a “stakedrop,” stirred mixed feelings among users. Some expressed frustration, considering it a relatively small allocation, especially for those who had been supporting the protocol since its early stages. Additionally, the non-transferable token structure and aggressive geographical restrictions added fuel to the fire.
Is the EigenLayer Team Greedy?
The decision of EigenLayer to retain 55% of the tokens for the protocol team and early contributors also faced criticism. Users argued that this disparity in distribution was unfair and fueled greed among developers and initial investors.
As for why they did 90% for phase 1 and 10% for phase 2:
They are NOT saying that phase 2 (defi users) get a 90% haircut on their points or anything. They are just mentioning that roughly 90% of the points in that snapshot came from direct or lrt stakers, and 10% from defi…
— 0xWenMoon | KOL arc (@0xWenMoon) April 29, 2024
However, not everyone shared these concerns. Henrik Andersson, Chief Investment Officer of Apollo Capital, defended the 15% allocation as “generous.” Andersson praised the linear distribution model of the airdrop, which he considered fair and believed it eliminated issues related to Sybil attacks. He also commended the protocol’s transparency regarding distribution and accessibility of information for users.
The EigenLayer community is at a turning point. Some continue to express disappointment and discontent, while others choose to adopt a more optimistic and hopeful outlook regarding the protocol’s future. The Eigen Foundation may be forced to reconsider its strategy to maintain the support and trust of its community while striving to advance its long-term goals.
