As a trailblazer in the Ethereum restaking space, Eigenlayer is facing backlash after unveiling its airdrop plans. of its EIGEN token airdrop .
The airdrop meant to reward loyal followers has instead incited community outrage due to its intricate reward framework and notable exclusions.
TLDR
- Eigenlayer's new EIGEN token airdrop has stirred user dissatisfaction because of a muddled distribution framework and the exclusion of certain demographics.
- In reaction to the airdrop news, users have pulled back about 150,000 ETH, estimated at $457 million, from the platform.
- The airdrop bars users from the U.S., Canada, China, and Russia, and it excludes those using VPNs during their interactions, prompting community backlash.
- Initially, the tokens will lack transferability, worrying many about investor and early contributor allocations, which might flood the market once transfers are possible.
- Due to the airdrop's divisive nature, withdrawal requests have considerably increased, with over 12,412 in a mere three days, potentially affecting Eigenlayer’s TVL.
The Eigen Foundation revealed on Monday that out of the initial 1.67 billion EIGEN tokens, 15% will be community-designated, with an initial 5% directed toward early users accumulating points.
While some could see considerable benefits, numerous users have voiced displeasure over the airdrop's stipulations.
A contentious point is that initial token non-transferability makes short-term rewards seem futile.
30% of tokens are for Eigen Labs' investors, with another 25% for early contributors, sparking fears of large-scale token sales that could alter the market price.
Critiques of the airdrop include notable exclusions of U.S., Canada, China, and Russia residents, along with VPN users.
This exclusionary stance has frustrated users, previously unimpeded in platform interaction, now denied rewards.
An estimated 150,000 ETH, or roughly $457 million, has been withdrawn due to the contentious airdrop announcement.
Eigenlayer has witnessed a spike in withdrawal petitions , with the past three days alone amassing over 12,412 pending requests. This substantial withdrawal could critically influence Eigenlayer's TVL.
The unrest from Eigenlayer's airdrop incident has speculated opportunities for competitors like Karak, which recorded a 20.5% TVL rise this week, juxtaposed with Eigenlayer's 4% decline.
