Tomcoins

In recent weeks, the crypto community has been actively discussing the BLUM project. Some call it a promising startup, while others see signs of fraud in it. Let's figure out what is causing such disputes.
🔍 What is BLUM?
BLUM claims to be a project aimed at innovations in the field of DeFi and blockchain. However, despite the loud statements, many investors have begun to doubt the transparency of their activities.

Congratulations If you hold $FET or $OCEAN or AGXI this is All You Need To Know & how to SWAP or Automatically get your Super Token. Fetch.ai is joining forces with SingularityNET and Ocean Protocol to create the Superintelligence Alliance with the token ticker $ASI "Artificial Superintelligence." You can read the full story about the Superintelligence Alliance here.
This blog post will detail the changes that are taking place to our native cryptocurrency FET.

The Superintelligence Alliance will form through the union of three top decentralized AI companies, Fetch.ai, SingularityNET and Ocean Protocol. With increased activity on our platform, combined with a period of exponential growth for AI projects, the time is right to switch gears with our token too. As part of the union, there will be a token merge of FET, OCEAN and AGIX into a new ASI token. Let's dive in🥂
💥What is $ASI?💥
The most important thing to note is that FET is the reserve currency of The Superintelligence Alliance and will be changing its name to ASI, pending successful governance proposals.
Fetch.ai, SingularityNET and Ocean Protocol will shortly be submitting governance proposals to their respective communities and voting is expected to open on 2nd April. Fetch.ai will complete voting on 7th April with all proposals scheduled to complete voting by 16th April.
If approved, it will then be possible to swap FET for Artificial Superintelligence token at a rate of 1:1. For example, if you hold 100 FET then you will be able to swap it for 100 ASI.
As part of the new initiative, Ocean Protocol will convert OCEAN tokens into ASI and SingularityNET will convert AGIX tokens into ASI at a fixed exchange rate, detailed further down.
The ASI token (the renamed FET token) will have a new market capitalization based on the token merge. The combined value of the Superintelligence Alliance is expected to be around $7.5 Billion with 2.631 Billion tokens, and with FET as the benchmark currency, valued at $2.82 per FET at the time of writing.
Snapshot of the Projects

💡ASI Token Exchange Mechanism💡
Starting with FET as the base token of the Alliance, the FET token will be renamed $ASI, and an additional 1.48 Billion tokens will be minted, with 867 million $ASI allocated to AGXI holders and 611 million $ASI allocated to OCEAN token holders.
The total supply of ASI tokens will be 2.63 Billion tokens.
A snapshot taken on Monday, 25 March 2024 shows a summary of the Max Supply (#) and Fully Diluted Value ($):

Here is the calculation basis for the token minting to give a proportional share of new $ASI tokens to OCEAN and AGIX holders:

Token holders will receive 0.433226 ASI per OCEAN and 0.433350 ASI per AGIX. This exchange rate is fixed and will not change. We expect that smart arbitrageurs will notice if a price differential between the tokens arises, and then arb it out to maintain a balance and equilibrium in the exchange rate.
🟢 I am a FET holder, what action should I take?
FET holders don't need to do anything right now. With the announcement live, each Foundation will speak to business partners, answer questions from the community and start to plan the next steps.
The first priority is to execute the token merge. As mentioned, FET token will be the reserve currency of the Superintelligence Alliance and it will be renamed ASI --- 'Artificial Superintelligence.'
Holders of OCEAN and AGIX need not do anything right now. The exchange rate between FET/ASI and OCEAN and ASI and AGIX is fixed and the swap mechanism will remain open indefinitely, so users can choose to swap tokens at their leisure.
✨ FET Tokens on Exchanges
If you have OCEAN and AGIX tokens on an exchange, no action is needed. We will work with each exchange to ensure a smooth conversion and your holdings will automatically be converted to $ASI tokens directly by the exchange. You won't see OCEAN or AGIX on the exchange --- but don't panic! Your tokens are there, just look for the ASI symbol.
Don't Deposit OCEAN / AGIX tokens into Exchanges after they've Executed a Conversion When an exchange has converted all OCEAN and AGIX tokens, the tickers OCEAN and AGXI will be retired from the exchange. If anyone accidentally sends OCEAN or AGIX an exchange after the conversion event, we cannot guarantee that the tokens will be available or converted to ASI. So please keep abreast of notices and announcements from your exchanges.
If you hold OCEAN or AGIX outside of an exchange and want to convert them to $ASI tokens, please see the next paragraph.
⚡ OCEAN / AGIX Tokens in Hard Wallets or Offline
For those of you holding your tokens in hard wallets or offline, a token swap mechanism will be available in the coming weeks to allow holders to exchange their OCEAN and AGIX for ASI.
Once made available, this swap mechanism will be available indefinitely to allow long-term stakers to exchange their OCEAN and AGIX for ASI tokens when their tokens unlock, without any FX or exchange risk.
⏳Timing for the Token Swap Mechanism
The token swap contracts have been tested and audited but given the complexity of the coordination with hundreds of business partners, we'll complete a more detailed analysis, speak with partners & exchanges, and come back to the community with a firm date to release the token swap tool. Stay tuned to our official channels which you should access via links on our website.
🎯DEXes and Pool Liquidity
We encourage liquidity providers to remove any OCEAN and AGIX related liquidity from DEXs at their convenience. Users may experience higher slippage in pools with lower liquidity. We recommend that you size your swap according to the available liquidity to minimize slippage.
Once a threshold of 95% of the OCEAN and AGIX token supply is converted to ASI, Ocean Protocol and SingularityNET Foundations will remove any pool liquidity that we have provisioned.
🌿New Beginnings🌿
We hope you will continue to join us on this journey into AI. We are extremely excited to move forward as an Alliance and bring our combined knowledge and expertise to bear. All three companies have been working on different parts of the decentralized stack and by teaming up, the value-flow from deep research, to tools & applications, and finally to large-scale commercialization of data and AI services can be expedited.
📚 Source: FET Fetch.ai News Article.
🖋️ By @CryptoVenom
Follow & Like for MORE Exclusive News🥂

Key Takeaways

EigenLayer is a protocol that enhances Ethereum's Proof-of-Stake system by allowing users to 'restake' their ETH.

EigenLayer's approach uses modular security, enhancing the flexibility and functionalities of staked ETH through a concept called "restaking collective".

Challenges include increased complexity, potential centralization risks due to staking pool dominance, and collusion threats within the module-based design.

Introduction

Ethereum transitioned from a Proof-of-Work (PoW) model to a Proof-of-Stake (PoS) system through a series of upgrades. In PoS, users stake their ETH tokens to secure the network. Essentially, they become validators who verify transactions and ensure network integrity. In return for their contribution, stakers earn rewards.

However, staked ETH is temporarily locked, limiting its accessibility. This is where EigenLayer steps in with its innovative approach. This article provides a quick overview of EigenLayer, its airdrops, core functionalities, pros and cons, and the key differences between traditional staking and EigenLayer staking.

What Is EigenLayer?

EigenLayer is a protocol built on top of the Ethereum blockchain. It introduced a concept called "restaking collective," allowing ETH stakers to support applications within the Ethereum ecosystem.

EigenLayer creates a dynamic marketplace for decentralized trust. Developers can benefit from the security provided by the collective pool of stakers, while stakers can support the development of their projects.

How Does EigenLayer Work?

Modules

EigenLayer introduces a modular security approach. It allows stakers to contribute their ETH to secure specific functionalities within the network. These functionalities are generally referred to as modules.

For example, a module might be dedicated to securing decentralized storage solutions like Arweave. Some modules could secure in-game items within blockchain-based games. Others could foster trust within DeFi applications like Aave.

Smart contracts

Ethereum stakers can restake their staked ETH via EigenLayer smart contracts, offering a new set of security and validation services to specific modules in the network. This is achieved by granting EigenLayer contracts the ability to set certain conditions on staked assets.

Restaking 

EigenLayer restaking can be done in two different ways: 

1. Solo staking. Users can operate their own nodes and actively validate transactions for the modules. This method is more suitable for advanced users.

2. Delegation. EigenLayer also allows delegating the node operation to other participants within the network. This is a convenient option for users who want to contribute to EigenLayer while avoiding the technical aspects. 

Staker diversity 

EigenLayer recognizes that stakers may have different preferences and capabilities. Some can have powerful computers suitable for solo staking, while others may prioritize convenience through delegation. 

Additionally, stakers may have different risk tolerance levels. EigenLayer allows modules to adjust their requirements to match specific stakers, fostering a more flexible network.

Actively Validated Services (AVS)

EigenLayer adopts Actively Validated Services (AVS) as specific services within the Ethereum ecosystem that require active validation and enhanced security. AVS can include high-stakes applications like decentralized finance (DeFi) platforms, cross-chain bridges, and other critical infrastructure. By leveraging AVS, developers can ensure their applications receive the necessary security and validation from a dedicated pool of restakers, enhancing the overall trust and reliability of their services.

Traditional Staking vs. EigenLayer Staking

EigenLayer disrupts the traditional staking on Ethereum, offering a unique approach with its "restaking collective" concept. Let’s take a look at the key differences between traditional staking and EigenLayer staking.

Liquidity

In traditional staking, staked ETH becomes temporarily locked. While the staked ETH is locked, stakers can’t use it. In contrast, while the underlying ETH remains staked, EigenLayer allows users to leverage it for additional purposes. For example, stakers may use it to increase the security of various applications being built on Ethereum.

Participation and rewards

When it comes to traditional staking, participation is relatively straightforward. Essentially, users lock up their ETH and earn rewards based on the staking protocol they choose. 

In contrast, EigenLayer offers a wider range of participation options. Users can choose between solo staking or delegation. Delegation might be a better choice for users who don’t have advanced technical knowledge of cryptocurrencies. 

In addition, EigenLayer staking can potentially be more rewarding. Modules with higher security needs might offer greater rewards for stakers who secure them.

Security focus

In traditional staking, staked ETH directly contributes to the security of the Ethereum blockchain. In EigenLayer staking, security becomes modular. Users can contribute to the security of specific modules within the Ethereum ecosystem. The overall security of a module generally depends on the collective staking power directed towards it.

EigenLayer Airdrop

EigenLayer airdrops are set to occur in multiple seasons, each containing one or more phases. In total, EigenLayer allocated 15% of the total supply of EIGEN tokens to be distributed across all seasons.

Season 1 Phase 1

Season 1 of EigenLayer’s airdrop campaign started on May 10, 2024, with 6.7% of the total token supply. Its claim window will be open until September 7, 2024.

The first snapshot happened on March 15, 2024, with bonus airdrops allocated to users who have restaked ETH or LSTs on EigenLayer between March 15 and April 29.

To be eligible for the first phase of the airdrop, users had to meet specific criteria, such as:

Holding or staking LRT tokens for a certain period.

Active participation in EigenLayer's governance processes.

Contributing to the development or testing of EigenLayer modules.

Engaging in community activities, such as participating in forums or social media discussions related to EigenLayer.

Season 1 Phase 2

Season 1 Phase 2 airdrop eligibility extends to DeFi users who participated in platforms such as Kelp, Pendle, Equilibrium, and others before March 15, 2024. This phase aims to reward long-term supporters and early participants in the network, fostering greater community engagement and participation.

To be eligible for the airdrop, users must have participated in the initial phase of EigenLayer's restaking program or be long-term supporters of the protocol. Specific eligibility criteria may include holding or staking LRT tokens, participation in network activities, or involvement in governance processes.

How to claim EigenLayer airdrops

Be wary of fake websites and phishing attacks. Make sure you are using the official websites and channels.

Eligible users can claim their airdropped tokens through the EigenLayer platform. The process involves connecting their wallet, verifying eligibility, and following the steps provided.

As of June 2024, the EIGEN tokens from the first airdrop season are not yet transferable but can be staked or delegated after being claimed.

Season 2

According to the EigenLayer Foundation, Season 2 has already started and any ecosystem participation beyond the March 15 snapshot will be considered for Season 2 airdrops. However, the details of Season 2 distribution are yet to be announced.

Enhanced Security for EigenDA

In June 2024, EigenLayer improved the security of EigenDA – its decentralized application (DApp) platform – to counteract Sybil and DDoS attacks.

Sybil attack prevention: Sybil attacks involve a malicious actor creating multiple identities to gain a disproportionate influence on the network. EigenLayer's enhanced security measures include stricter identity verification processes and mechanisms to detect and prevent malicious activities.

DDoS attack mitigation: Distributed denial-of-service (DDoS) attacks aim to overwhelm the network with a flood of traffic, causing service disruptions. To counter this, EigenLayer has implemented robust traffic filtering and rate-limiting mechanisms. These measures ensure that legitimate traffic is prioritized and that malicious traffic is effectively blocked, maintaining the availability and performance of the EigenDA platform.

Continuous monitoring: EigenLayer has also introduced continuous monitoring and threat detection systems to proactively identify and respond to potential security threats. This involves real-time analysis of network traffic, anomaly detection, and rapid incident response to address any emerging security issues.

Pros and Cons of EigenLayer

Pros

1. Enhanced security for DApps. By leveraging a pool of validators for various modules, EigenLayer strengthens the overall security of decentralized applications (DApps) built on those modules. This fosters a more trustworthy environment for users interacting with DApps.

2. Testing ground. EigenLayer acts as a platform for testing and validating new Ethereum functionalities before integrating them into the mainnet. This lets developers experiment with innovative ideas like danksharding, a core feature of the Ethereum Cancun upgrade.

3. Permissionless innovation. Developers no longer need to build their own validator sets to secure their applications. Instead, they can leverage the existing pool of secure validators offered by EigenLayer through restaking. This generally lowers the entry barrier for developers and fosters more innovation on Ethereum.

Cons

1. Complexity. EigenLayer introduces a new layer of complexity to the Ethereum ecosystem. Understanding how restaking works, choosing the right modules to participate in, and managing the technical aspects (for solo stakers) can be challenging for some users.

2. Centralization risks. While EigenLayer promotes decentralized trust, a few dominant staking pools may emerge, leading to a degree of centralization within the restaking collective.

3. Module collusion risks. ​​The modular design of EigenLayer offers flexibility but also introduces a potential risk of collusion between malicious actors controlling multiple modules.

Closing Thoughts

EigenLayer's "restaking collective" serves as a potential game-changer for decentralized trust on Ethereum. By enabling permissionless innovation and providing a testing ground for Ethereum features, EigenLayer may play a crucial role in shaping a future of robust, secure, and scalable decentralized applications.

Further Reading

What Is Liquid Staking?

What Is the Ethereum Cancun Upgrade?

What Is Crypto Staking and How Does It Work?

What Is Danksharding?

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