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EigenLayer Launches Airdrop Season, Allowing Users To Claim 113M EIGEN Tokens

Restaking protocol EigenLayer has unveiled its highly anticipated airdrop season, during which eligible users can claim a portion of the initial EIGEN token supply. 

EigenLayer Sets September 2024 Deadline

The protocol’s announcement on Friday revealed that “Season 1” commences with 6.05% of the total supply, which users can claim starting on May 10. 

Moreover, “Season 1 phase 2,” set to begin mid-June, will increase the claimable percentage to 6.75%. Season 1 will distribute approximately 113 million EIGEN tokens to participants. EigenLayer has reserved 15% of the initial token supply for the community across all seasons, signaling its commitment to inclusive participation.

EigenLayer has also announced that EIGEN tokens are currently non-transferable. However, the protocol plans to unlock token transfers once new features are launched and “further decentralization” is achieved. 

These developments are expected to take place by September 30th, 2024. Until transfer restrictions are removed, core contributors and investors will not receive EIGEN staking rewards, and no inflation will occur.

Record-Breaking $14 Billion In Assets

Since its soft launch in 2023, EigenLayer has reportedly attracted $14 billion in assets, making it a prominent player in the decentralized finance (DeFi) space. 

According to Bloomberg, the protocol’s restaking service offers amplified returns by leveraging the process of depositing ETH coins to support the Ethereum blockchain. Eigen Labs, the Seattle-based firm behind EigenLayer, raised approximately $165 million from notable backers, including a16z Crypto.

Investors gain access to EigenDA by staking EIGEN, a performance data availability system supporting Ethereum rollups. The protocol claims this presents an opportunity for users to secure amplified returns. 

Additionally, EigenLayer will shortly introduce compatibility with various AVSs (Application-Specific Verification Systems), offering stakers more options. 

Nonetheless, virtual private network users and residents of countries such as the US, Canada, and China have been excluded from the airdrop, highlighting the challenges of operating within regulatory frameworks and ensuring compliance. Eigen Foundation’s executive director, Robert Drost, acknowledged the complexities of navigating regulatory guidelines:

It’s not possible to operate in the space without following regulatory guidelines and being responsible, and the challenging part is that there is not a lot of clarity. 

Despite these setbacks, EigenLayer’s popularity has positioned it as the second most popular DeFi application, surpassing liquid staking platforms like Lido and Rocket Pool. 

While liquid staking provides easier access to staking rewards and leads the DeFi category, it has experienced significant outflows in recent months. DefiLlama data indicates a 27% decline in total value locked in liquid staking protocols since their peak of $63 billion in March. EigenLayer’s restaking service has contributed to the restaking of nearly 4% of all ETH. 

EigenLayer

The second largest cryptocurrency on the market, Ethereum, is trading at $2,890, following Bitcoin’s lead with a 3.8% drop in the past 24 hours. 

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EigenLayer Makes A Big Splash With EIGEN Token Launch And Major Airdrop Plan, Get The Full Scoop!

EigenLayer, a decentralized restaking protocol built on Ethereum (ETH), has made significant announcements, paving the way for new developments within the crypto ecosystem. 

The protocol unveiled its native token, EIGEN, which the newly formed Eigen Foundation will distribute. Alongside this, EigenLayer introduced a major plan for an airdrop and released a comprehensive new Whitepaper.

EigenLayer Unveils EIGEN With Novel Mechanism

According to the protocol’s announcement, the introduction of the EIGEN token brings forth a complementary mechanism designed to address “intersubjective” faults, which cannot be resolved through ETH restaking alone. 

By expanding ETH restaking, EigenLayer positions ETH as the Universal Objective Work Token, while the universality of EIGEN makes it the Universal Intersubjective Work Token. EIGEN’s universality is reportedly aimed at allowing it to fork and slash for intersubjective errors committed by EIGEN stakers in any AVS (Automated Verification System) within the protocol. 

To ensure widespread adoption of EIGEN across applications, EigenLayer has designed an application-independent mechanism to maintain the system’s cryptoeconomic security. 

In EigenLayer, EIGEN staking and ETH restaking play complementary roles. EIGEN addresses safety properties through objective slashing, and ETH restaking ensures liveness and censorship-resistance properties dependent on stake decentralization.

The launch of EIGEN also introduces intersubjective staking, marking a significant milestone for the protocol and the Ethereum ecosystem. However, due to its newly introduced design, the concept requires widespread adoption and discussion among ecosystem participants. 

At launch, the Eigen token will have a total supply of 1.67 billion tokens, with the Foundation allocating 45% of the tokens to the community. This allocation is further divided into staked drops, community initiatives, and ecosystem development.

Investors will reportedly receive almost 30% of the tokens, while early contributors will receive over 25%. Both these groups are subject to a three-year lockup period for their allocations. 

A complete lock will be in place during the first year, followed by a gradual release of their total holdings at a rate of 4% per month over the subsequent two years.

EIGEN Token Launches Meta-Setup Phase

While the initial implementation of intersubjective staking at launch mirrors only a limited extent of the full protocol, several parameters still need to be determined for its full actuation. 

To address this, EIGEN is being launched in a meta-setup phase, serving as a call to action for researchers, experts, and the broader community to engage in public discourse. 

As EigenLayer announced, this collaborative effort aims to help define the necessary parameters to make the protocol and its interaction with the rest of the Ethereum ecosystem as effective as possible.

EigenLayer

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Wormhole $617M Airdrop Ignites Valuation Surge To $3B, But W Price Stumbles 23%

Wormhole, a cross-chain communication protocol enabling the transfer of assets between blockchains, recently launched an airdrop campaign for its newly issued governance token, W. Early users were rewarded with 617 million W tokens, and the protocol also released a roadmap outlining its plans.

Wormhole Protocol Unveils Roadmap

According to the protocol’s roadmap, W aims to become a native multi-chain token, leveraging the advantages of both the Solana and Ethereum Virtual Machine (EVM) chains. 

Initially launched as a native SPL token on Solana, W will reportedly leverage Solana’s performance, offering increased performance, scalability, low transaction costs, and fast settlement times.

After the Solana debut, W will be extended to all Wormhole-connected EVM chains using Wormhole Native Token Transfers (NTT). This framework allows W to continuously roll out across Solana, the Ethereum mainnet, and Layer 2 (L2s) without liquidity fragmentation.

The open-source NTT framework allows projects to control token behavior on each chain, including token standards, metadata, ownership/upgradability, and custom features.

Cross-Chain Governance System

Wormhole also introduces a governance system where token holders on any supported chain can create, vote on, and implement governance proposals. This approach allows maximum participation in the Decentralized Autonomous Organization (DAO) by providing a frictionless user experience for token holders distributed across multiple chains. 

As announced, W holders can lock and delegate their tokens on Solana and EVM chains, allowing them to participate in governance decisions. The Wormhole DAO, composed of W token holders, will oversee the Solana, Ethereum mainnet, and EVM L2s governance system.

Wormhole, developed by Jump Crypto, a division of Jump Trading Group, has been under development for several years. Despite encountering challenges, including a significant hack in February 2022 resulting in a loss of approximately $320 million, the protocol has continued to evolve. 

Furthermore, the recent listing of the W token on major exchanges such as Crypto.com and the future support planned by Coinbase on April 4 further validate its progress.

W’s Debut On OpenBook

The W token debuted on the Solana-based decentralized exchange (DEX) OpenBook at $1.66, with a market capitalization of $2.98 billion and a fully diluted value of $16.5 billion. 

However, the token’s market capitalization and fully diluted value have since fallen to $2.2 billion and $12.5 billion, respectively, according to updated data from CoinGecko. Trading volume for W has remarkably increased, reaching $555,937,593 in the last 24 hours, representing a staggering 25,732,359.60% surge.

Following the airdrop, some users openly shared their sell-offs of the W token on social media platforms, resulting in a 23% price drop. At the time of writing, the token is trading at $1.32.

Wormhole

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Ether.fi $210M Airdrop Sparks Market Turbulence, ETHFI Value Drops By 35%

ETHFI, the governance token of the decentralized liquid staking protocol Ether.fi, debuted for $4.13 following its distribution through its airdrop on March 18. 

However, since the $210 million airdrop, the value of ETHFI has experienced a significant decline, plummeting over 35% to its current trading price of $3.05, according to CoinGecko data.

ETHFI Airdrop Attracts 20,000 Participants

Market expert Tom Wan has provided a summary of the ETHFI airdrop. Out of the total supply of 16.8 million ETHFI tokens, approximately 28% have been claimed by participants. 

The airdrop attracted around 20,000 claimers, showcasing considerable interest in the token distribution. Notably, the top wallets, accounting for 1.67% of the total distribution, have the potential to receive between 10,000 and 25,000 ETHFI tokens, reflecting substantial holdings.

Ether.fi

Most claimers, comprising approximately 67% of participants, are expected to receive a lower allocation of ETHFI tokens, ranging from 175 to 500. 

This distribution strategy aims to ensure a broader and more equitable dispersion of the tokens among participants. However, an interesting observation is that 76% of claimers have transferred their ETHFI tokens to other wallets, indicating a potential desire for liquidity or trading activities.

Furthermore, it is noteworthy that 38% of the token receivers are new wallets, suggesting an expansion of the ETHFI user base as of May 1, 2023. This influx of new participants showcases a growing interest in the governance and utility offered by Ether.Fi’s protocol.

Ether.fi Witnesses Surge In Total Value Locked

Ether.fi has experienced notable growth in net deposits and Total Value Locked (TVL), as evidenced by data provided by Token Terminal. However, the platform has faced fluctuations in its active user base. 

According to Token Terminal, net deposits on Ether.fi have significantly increased, reaching $2.99 billion over the past 30 days alone. This marks a significant growth rate of 136.9%.

Simultaneously, the TVL on Ether.fi has mirrored the surge in net deposits, which also amount to $2.99 billion over the same 30-day period. This metric represents the total value of assets, predominantly cryptocurrency, locked within the protocol. 

However, while Ether.fi has witnessed robust growth in net deposits and TVL, the platform has experienced fluctuations in its active user base. Daily active users have shown a considerable decline of 54.3% over the past 30 days, currently standing at 506. 

Ether.fi

Similarly, weekly active users have experienced a more moderate decline of 3.5%, currently standing at 5,780. This suggests that while there has been a slight reduction in user engagement every week, a significant portion of the user base remains actively involved with the protocol.

The most substantial decline in user activity is observed in monthly active users, with a notable drop of 68.9% over the past 30 days. The figure currently stands at 14,740 users. 

Overall, the distribution of the ETHFI token through the airdrop has garnered significant attention and participation. At the same time, the token’s value has experienced a decline since its initial listing, the long-term potential and impact of ETHFI within the Ether.Fi ecosystems are yet to be fully realized.

Ether.fi

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Starknet Trading Debut Sees Initial Excitement Fade As STRK Plummets Over 50%

In a highly anticipated move, Starknet (STRK), an Ethereum (ETH) roll-up protocol, commenced trading on prominent cryptocurrency exchanges including Binance, Bybit, Bitfinex, and OKX on Tuesday. 

The token’s launch was accompanied by an airdrop, distributing a staggering 728 million tokens to over one million addresses, making it one of the largest airdrops of the year. However, the initial excitement was dampened as the token experienced a significant retracement of 53.8%, plummeting to a current price of $2.04.

However, to better grasp the protocol’s capabilities and assess its potential future price actions, it is crucial to delve into the underlying technology and the buzz surrounding this player within the top 60 cryptocurrencies, boasting a substantial market capitalization of $1.4 billion.

Unveiling Starknet

Starknet operates as a Layer 2 solution, offering scalability and Ethereum-level security by generating STARK proofs off-chain, which are relayed on-chain. 

Developed by StarkWare Industries, a blockchain firm based in Israel, Starknet was specifically designed to address Ethereum’s scalability concerns. The protocol was fully launched in February 2022 as a permissionless Layer 2 network, allowing developers worldwide to build decentralized applications on its infrastructure. 

StarkWare also developed another platform called StarkEx, which has been live since June 2020. However, StarkEx is a permissioned network tailored to specific decentralized app (Dapp) requirements.

Founded in 2018, StarkWare has garnered support from renowned investors such as Sequoia Capital, Paradigm, and Coatue, solidifying its position within the industry. In a Series D funding round held in May 2022, the company raised $100 million, valuing StarkWare at an impressive $8 billion. 

StarkWare has raised $261 million in funding, demonstrating strong investor confidence in its vision and technology.

With that noted, a prominent decentralized finance (DeFi) researcher who goes by the pseudonym “DeFi Ignas” has identified three key catalysts that could fuel the long-term growth of Starknet. 

STRK Airdrop And DeFi Incentives 

The researcher highlights Starknet’s utilization of STARKs, a cryptographic proof system, to validate transactions on the Ethereum network. In contrast to other zero-knowledge rollup solutions that employ SNARKs, STARKs offer quantum resilience and the potential for numerous scalability improvements. 

In addition, DeFi Ignas believes that the use of the Cairo Development Language ensures that the protocol is resistant to “lazy copy-paste forks,” thereby increasing its “technical robustness.”

Ignas suggests that Starknet’s differentiators, such as “Quantum Resilience” and the comparison between SNARKs and STARKs, present an intriguing potential that is yet to be fully realized. By effectively communicating these distinctive features, Ignas suggests that Starknet can capture the imagination of the wider audience, generating increased interest and adoption.

Furthermore, Ignas identifies several factors that could contribute to the growth of the Starknet ecosystem. Firstly, the airdrop of STRK tokens is believed to create a “wealth effect,” attracting capital into the ecosystem. 

Additionally, Starknet plans to allocate 50 million STRK tokens to incentivize DeFi protocols, which, in turn, will drive growth in Total Value Locked (TVL). Protocols operating on Starknet are expected to distribute new tokens to users through airdrops. 

On top of that, the STRK token has a “robust” utility model for Ignas, serving as a means to pay gas fees, distribute voting power through delegates, and facilitate native staking for governance and security. 

The initial staking Annual Percentage Yield (APY) is set at 12%, incentivizing users to stake their tokens rather than sell them. While some individuals expressed dissatisfaction with not receiving the airdrop, Ignas notes that 27% of survey respondents (3.4k people) received STRK tokens, indicating potential for growth within the Starknet ecosystem but not necessarily for the STRK token itself.

Starknet

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This New Development Could Stop The Optimism (OP) Price Dead In Its Tracks

Optimism (OP) looks to be on a good recovery path so far in the month of September. This is thanks to the increasing positive user sentiment around the Ethereum Layer 2 network. However, the most recent development on the network could pose a threat to this recovery trend.

Optimism Announces Third Airdrop

After completing two rounds of airdrops already this year, the Optimism network has moved on to its third airdrop. This time around, the network is looking to reward loyal Optimism users who have delegated their OP to be used to participate in governance on the network.

In its announcement, the team revealed that the latest iteration of its airdrop reward system would see 19 million OP tokens distributed to 31,000 unique addresses on the network. The airdrop distribution began on Monday, September 18, with the tokens being sent directly to the wallets of eligible users.

The requirement was to have delegated OP tokens between January 20 to July 20 to receive the airdrop. To sweeten the pot, the airdrop applies a 2x multiplier to those who had delegated their tokens to individuals who were active voters.

As for those who were ineligible to receive the latest round of airdrops, the team assured the community that more would be coming as 19% of the total OP token supply is dedicated to airdrops.

Will This Affect OP Price?

The value of the total OP tokens being distributed in the third airdrop comes out to around $26 million. This means that $26 million worth of tokens are making their way into the open market. Only half of the participants selling their allocation could see a $13 million selling pressure on the price of the digital asset.

Now, if there is not enough demand to suck up this new supply, then the sellers will win and the OP price will drop drastically. This is already being manifested in Optimism’s performance in the last day which is already moving into the red with 0.24% losses. As more users receive and access their tokens, the selling pressure could climb rapidly.

However, given that users are being rewarded for holding and delegating their tokens, it could spark an urge to hold onto the OP tokens among those who receive them in an effort to qualify for future airdrops. In such a case, the OP price will hold firmly and shake off any bear pressure.

OP is already seeing increased interest which has translated to a 40% increase in its daily trading volume, according to data from CoinMarketCap. Its price is also holding tentatively at $1.40 as investors wait for the market to react.

Optimism (OP) price chart from Tradingview.com