The Eigen Foundation is an independent body focusing on growing the EigenLayer ecosystem and its native Eigen token. But what is this EigenLayer? Well, simply put, EigenLayer is an engine used to maximize open innovation. At the center of EigenLayer is a sophisticated re-staking that provides an added layer of security on other platforms besides the Ethereum blockchain.
Conventionally, when you stake ETH, the coins remain locked within the Ethereum ecosystem.EigenLayer revolutionizes this phenomenon by allowing ETH re-staking, which enables the already staked ETH on the ETH ecosystem to be re-used as cryptoeconomic security for other blockchain protocols besides the Ethereum ecosystem.
Introducing the Eigen Foundation, EIGEN token, and Season 1 Stakedrop! pic.twitter.com/lxEVSbRfVB
— Eigen Foundation (@eigenfoundation) April 29, 2024
The Importance of EigenLayer’s Re-staking Protocol
Re-staking is a concept that might seem rather redundant and unnecessary. At first glance, it may strike you as the equivalent of loan top-ups; however, there’s a more profound need for this technology in the Web3 space than you and I can believe at first glance.
EigenLayer’s main unique selling proposition is its re-staking protocol. Through re-staking, the ecosystem enjoys a larger pool of programmable trust through Ethereum, resulting in what they call Shared Security Commons.
EigenLayer’s Native Token – EIGEN token
The Eigen Foundation, powered by the Eigen Labs research team, will launch the EIGEN token, which is architected to power the entire Eigen ecosystem. As an ETH re-staking platform, EIGEN will be complementary to ETH restaking by addressing issues that cannot be fixed by ETH re-staking. These problems are referred to as “Intersubjective” faults.
When EIGEN launches, users will be able to stake it in EigenLayer to secure EigenDA. Through the foundation’s objective of maximizing open innovation, the will seeks to incorporate several flavors of staking, with ETH and EIGEN being the first in line.
EigenLayer’s StakeDrop Explained
Due to the ecosystem’s complexity, the Season 1 Stakedrop will be rolled out in two major phases. Ideally, 5% of the initial supply of the EIGEN token will be allocated to restakers.
In the first phase, close to 90% will be dedicated to existing EigenLayer protocol users. Those who have restaked and users eligible for liquid re-staking tokens- aka LRTs.
The second phase will include the remaining 10% and will be allocated majorly to those who’ve had complex interactions with the said LRTs.
In essence, the re-staker allocation methodology in phase one will take into consideration loyalty, direct native staking, Sybil resistance, concentration, and community focus. The team explains in detail how the individual factors weigh out in the grand scheme of allocation.
The EIGEN token distribution system will set aside up to 45% of the token and all future inflation of the token for the community. The Stakedrops, Future community initiatives, and R&D and ecosystem development each get a 15% allocation. Investors will receive 29.5%, while Early contributors retain 25.5%. At Launch, the EIGEN token will have a total supply of 1,673,646,668.28466 tokens.
