$EIGEN

• Introduction to EigenLayer Protocol:

• EigenLayer is a middleware protocol built on Ethereum that innovatively proposes a 're-staking' mechanism. This mechanism allows nodes that have already staked ETH or liquidity staking tokens (LSD) to re-stake their assets into other protocols and services supported by EigenLayer, thereby achieving yield stacking.

• Role of EIGEN Token:

• The EIGEN token is defined as a 'utility token', meaning that holders can participate in specific work tasks by staking this token, such as becoming network validators. When participants complete work tasks as agreed, they can receive corresponding rewards; conversely, if they breach the rules, they face the risk of token slashing.

• Complementary Relationship Between EIGEN and ETH:

• Within the EigenLayer framework, EIGEN and ETH form a complementary relationship. ETH staking primarily ensures the consensus security of the underlying blockchain, while EIGEN staking focuses on supervising higher-level behavioral norms, particularly those human factors that are crucial for the overall health of the ecosystem but are difficult to determine directly through algorithms.

• EIGEN Token Economics:

• According to the EIGEN token whitepaper published by EigenLayer on GitHub, the total supply planned for EIGEN is 1.67 billion. Of this, 15% of the supply will be used for staking, another 15% reserved for community initiatives, and a similar amount (15%) allocated to the development of the EigenLayer ecosystem.

• Market Prospects of EIGEN Token:

• Although EIGEN has not yet been listed on exchanges, its market prospects are gaining attention. By introducing the concept of 're-staking', EigenLayer provides additional value creation opportunities for participants in the Ethereum ecosystem and lays the foundation for building a more robust and efficient distributed network.

• Dual Token System of EIGEN:

• EigenLayer employs a dual token mechanism, including bEIGEN (the primary staking token) and EIGEN (used for non-staking activities such as DeFi). This design aims to isolate the impact of bEIGEN token forks from non-staking applications.

• Valuation and Circulation of EIGEN Token:

• Although EIGEN has not activated transfer functions, some pre-market trading platforms have initiated contract trading for EIGEN. EIGEN is temporarily priced at $2.95 on Aevo, with a total supply of 1.67 billion tokens at genesis, corresponding to an FDV of approximately $4.9265 billion.