The Eigen Foundation has announced its commitment to allocate 1% of its EIGEN token supply to the Ethereum Protocol Guild.
The Eigen Foundation has announced its commitment to allocate 1% of its EIGEN token supply to the Ethereum Protocol Guild, a coalition of core developers tasked with maintaining the Ethereum layer-1 blockchain.
This decision involves approximately 16.8 million EIGEN tokens, based on a total supply of 1.68 billion tokens, with around 210 million currently in circulation.
The funds are intended to support the ongoing efforts of the Protocol Guild, which consists of 180 members from 29 different teams. This initiative comes as EigenLayer, a restaking protocol on Ethereum, continues gaining traction.
EigenLayer allows Staked Ether (STETH) and other assets to be restaked, creating additional yield opportunities for investors while enhancing security for decentralized applications and blockchain protocols.
Currently, restaking protocols have attracted significant attention in the crypto space, with a reported total value locked (TVL) of approximately $26.9 billion, according to DefiLlama.
EigenLayer accounts for a substantial portion of this, holding around $18.2 billion in TVL. The protocol's growth has led to the EIGEN token entering the top 100 cryptocurrencies by market capitalization in October, though it has since fallen to the 108th position.
In a recent update, EigenLayer expanded its offerings to include Wrapped Bitcoin products, enabling users to deposit uniBTC to the ARPA Network, which operates on the EigenLayer framework, in exchange for yield.
The rise in TVL across the decentralized finance ecosystem is nearing levels seen in 2021, partly driven by the popularity of liquid restaking products and the introduction of wrapped Bitcoin instruments.
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