EigenLayer Increases Airdrop Allocation of 28M EIGEN Tokens Following User Backlash

EigenLayer, the Ethereum restaking protocol, has announced an expansion of its airdrop program in response to community backlash. Approximately 280,000 wallet addresses will now receive an additional 28 million EIGEN tokens. The initial airdrop plan was criticized by users for its restrictive measures and limited community allocation. The Eigen Foundation made the decision to increase the token distribution and shared the details in a recent blog entry. The revised airdrop includes both the initial claimants and new recipients who interacted with the protocol up to April 29.
The additional tokens hold considerable value, with each EIGEN token currently trading at $10 on the derivatives market. According to Aevo data, the estimated worth of the airdrop is around $280 million.
EigenLayer has outlined the distribution details in their blog post. Participants from Season 1 will receive a minimum of 110 EIGEN tokens each, while those from Season 2, who engaged with the platform between March 15 and April 29, will receive at least 100 EIGEN tokens. The official distribution of the tokens is scheduled for May 10, but they will initially be non-transferable. This measure is to ensure the stability of the protocol’s key features, such as payments and slashing parameters.
The conditions of non-transferability state that private investors and team members will face a one-year lock-up period once the tokens become transferable to the community. After this phase, their tokens will unlock at a rate of 4% per month, concluding three years after the transferability date.
EigenLayer has also addressed the exclusions and future plans. The protocol’s stringent geo-blocking and anti-VPN measures affected potential claimants from over 30 countries, including the United States, Canada, China, and Russia. In response, EigenLayer has committed to revising its allocation processes to include more participants from its testnet phase. Missed testnet user allocations will be adjusted in Phase 2 of Season 1, with further details to be provided. This update aims to rectify any oversights in the initial airdrop process and ensure broader inclusion.
Furthermore, EigenLayer has laid out a roadmap for unlocking investor tokens in the future. These tokens will begin to vest following the start of token transferability, which is expected after September 30, 2024, as new features are implemented on EigenLayer’s mainnet.