EigenLayer Unveils EIGEN Token Airdrop, Tokens Not Yet Transferable
By Ruholamin Haqshanas
Updated:
May 11, 2024 05:11 EDT
|
2 min read
Ethereum restaking protocol EigenLayer has officially launched its token-claim process, known as an “airdrop,” for Season 1, Phase 1 rewards.
In a recent blog post by the development team, it was announced that eligible users can now obtain the new EIGEN token through the claims process after a few weeks of anticipation.
However, it is important to note that the EIGEN tokens are currently nontransferable, meaning users cannot sell or trade them.
The blog post also mentioned that the EIGEN token will become transferable in the future once the development team introduces new features in the coming months. The expected implementation date for these features is September 30.
Users are advised to claim their tokens before the claim process closes on September 7, as any unclaimed tokens after that date will not be distributed.
According to EigenLayer’s documentation, the EIGEN token is not available for users in more than 30 jurisdictions, including the United States, Russia, China, and Canada. Additionally, the use of most VPN server addresses for token claims is prohibited.
The current claims process has unlocked 6.05% of the total supply of EIGEN tokens, with an additional 0.7% set to be unlocked in mid-June during “Phase 2.” During this time, users of applications like Kelp, Pendle, Equilibrium, and similar apps will be eligible to claim their tokens.
The ongoing airdrop primarily caters to users who restaked Ether or its liquid staking derivatives on EigenLayer before March 15. Users holding liquid restaking tokens (LRTs) can also claim their rewards now, as long as their activities do not fall under “Phase 2.” Users who restaked on EigenLayer between March 15 and April 29 are eligible to claim 100 bonus tokens immediately, with the majority of their claims becoming available in mid-June alongside other Phase 2 participants.
The EIGEN airdrop has sparked controversy within the decentralized finance (DeFi) community. Leandro Schlottchauer, co-founder of Kuyen Labs, believes it may be one of the last “life-changing airdrops.” However, many EigenLayer users have criticized the airdrop for its ban on VPN servers, the distribution of nontransferable tokens, and the perceived short snapshot period.
LayerZero Labs to Address Sybil Farmers in Airdrop
As the airdrop season continues, LayerZero Labs, a prominent cross-chain interoperability protocol, has pledged to tackle the issue of sybil farmers ahead of its highly anticipated airdrop.
The project has announced plans to conduct an internal investigation to identify and exclude sybil farmers from receiving allocations in its future token generation event. Additionally, the project intends to launch a reward program, offering a 10% bonus of the intended token allocation to bounty hunters who identify additional sybil users.
LayerZero Labs recently completed the first snapshot for its highly anticipated airdrop. In December, the project announced its plans to distribute tokens to early adopters in the first half of 2024.
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