Token airdrops continue this month, thanks to EigenLayer, a top restaking protocol on Ethereum. So, who is eligible for the airdrop, and how can one claim the tokens? Well, we advise you to continue reading this article for more details.
Exploring EigenLayer
Before talking about the EigenLayer’s airdrop, it is important we understand this Ethereum-based project. EigenLayer enables Ethereum stakers to utilize their staked Ether on various decentralized protocols. The idea is to allow users to explore investment opportunities in Ethereum’s decentralized finance space rather than letting their staked ETH sit idle.
EigenLayer’s Stake Drop
EigenLayer calls its token airdrop “Stake Drop.” The token to be issued is known as EIGEN. When it launches, its holders will be able to trade it for the EigenDA governance token.
It is worth mentioning that EigenLayer plans to airdrop its token to users in two phases. As of May 7th, some of the existing users of the protocols have already qualified for the token airdrop. According to EigenLayer’s recent tweet, users marked as eligible for phase one of the EIGEN airdrops were the most active on the Ethereum restaking protocol, and many of them utilized their staked Ether in DeFi markets, such as Pendle.
Eligible users can start claiming their airdropped EIGEN tokens from May 10th, 2024. The claim period will run for 120 days. If you are an EigenLayer user, you can visit the restaking protocol to check your eligibility status.
That said, here is how you can increase your chance of qualifying for phase two of the EIGEN token airdrop set to happen later this year.
Direct Staking
You can become eligible for the EIGEN token airdrop by simply restaking your staked ETH on the EigenLayer protocol, which supports several Web3 wallets, including Trust Wallet and MetaMask. When you restake your stake Ether, you automatically earn points that increase your chances of receiving EIGEN tokens in the near future.
Active Participation
To become eligible for future EIGEN airdrop through active participation, you will need to buy the token when it is available for trade. Use your EIGEN token to explore the Ethereum DeFi market. Moreover, you can use the token to purchase the EigenDA governance token and participate in EigenLayer’s decision-making process.
Restaking via External Platforms
You can restake your staked Ether on other restaking platforms like EtherFi and still become eligible for the EIGEN airdrop. Here is how you do it. For example, if you restake on EtherFi, you will receive eETH, which you can then stake on EigenLayer, thus earning points.
EigenLayer has said that 50 points are equal to one EIGEN. Experts anticipate that the EIGEN token will start trading at $9 when it launches.
Token Allotment
Here is the amount of EIGEN tokens that EigenLayer has set aside for the airdrop:
- EIGEN has a total fixed supply of 1.67 billion tokens.
- Initially, EigenLayer allocated 10% of that supply, or roughly 167 million tokens, for the airdrop. However, due to community backlash over “unfair token distribution,” the restaking protocol added 28 million extra EIGEN tokens.
EigenLayer’s Token Airdrop Criticized
Some community members have criticized EigenLayer for various issues related to its token airdrop. For example, the restaking protocol will initially make the airdropped tokens non-transferable, thus limiting their utility. Also, some users believe that the token distribution in phase one of the airdrop has been unfair, claiming that they were left out despite being active participants in the protocol.
Furthermore, part of the community is unhappy because EigenLayer has restricted users of certain countries, including Canada, Russia, and the United States, from participating in the token airdrop. Another criticism is in regard to the high cost of claiming the airdropped tokens.
Expected Phase Two Airdrop Fixes
The EigenLayer community expects the protocol to make several enhancements in phase 2 of the EIGEN airdrop. Some include improved inclusion of EigenLayer users, removal of the non-transferability functionality, and increased token allocation.
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