Token

Value

EigenLayer

when

April

The Ethereum-based restaking protocol EigenLayer has announced that users would get 86 million EIGEN tokens as part of its “season 2 stakedrop,” starting on September 17, 2024. 
As per the <a href="https://blog.eigenfoundation.org/season-2-stakedrop/" target="_blank" rel="noreferrer noopener nofollow">blog post</a>, This distribution will be allocated to stakers, node operators, ecosystem partners, and the EigenLayer community. The breakdown of the distribution is as follows: 
<ul class="wp-block-list"> 
 <li>Stakers and node operators: These key participants will receive the largest share, with 70 million EIGEN tokens allocated to them.</li> 
 <li>Ecosystem partners: 10 million tokens will be distributed to those who have contributed to EigenLayer’s development and growth.</li> 
 <li>EigenLayer community: 6 million tokens will be allocated to the community, recognizing their role in fostering adoption.</li> 
</ul> 
The total amount of 86 million tokens represents about 5% of EIGEN’s overall supply, which will be capped at 1.67 billion tokens when fully launched. 
EigenLayer first introduced its native EIGEN token in April 2024, following a highly successful period of capital inflows. At its peak, the protocol amassed around $15.7 billion in deposits, highlighting its prominence in the decentralized finance (DeFi) ecosystem. 
However, more recent <a href="https://defillama.com/protocol/eigenlayer" target="_blank" rel="noreferrer noopener nofollow">data</a> from DefiLlama indicates a decline, with the Total Value Locked (TVL) now sitting at $11.3 billion. This downturn reflects broader trends seen across several restaking protocols. 
EigenLayer’s protocol allows users to stake Ethereum (ETH), which can then be repurposed to secure additional networks or other protocols in exchange for additional yield. This innovation has been attractive to DeFi users seeking to maximize their returns on staked assets. 
The drop in EigenLayer’s TVL mirrors a wider trend among restaking protocols. Renzo, another major player, has seen its TVL decrease by 22%, now standing at $1 billion. Karak, another competitor, has also faced a reduction, with its TVL falling by 14.6% to $688 million. 
Ethereum’s price has decreased significantly, from its July 2024 high of $3,536 to its current trading price of $2,388. This reduction has impacted the value of staked assets and overall protocol TVL. 
Many users who participated in these protocols did so with the strategy of airdrop farming. This approach involves staking assets in anticipation of receiving a larger share of a token airdrop, should the protocol release a native token. As several airdrop campaigns concluded, users began withdrawing their assets, contributing to the TVL decline. 
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow"> 
 Also Read: <a href="https://www.cryptotimes.io/2024/06/20/eigenlayer-launches-phase-2-of-its-eigen-token-airdrop/" target="_blank" rel="noreferrer noopener">EigenLayer Launches Phase 2 of its EIGEN Token Airdrop</a> 
</blockquote>

EigenLayer to Distribute 86M Tokens in Season 2 Stakedrop

The Crypto Times

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