Eigenlayer, a blockchain network that utilizes staked Ether (ETH) as its native coin, recently released a white paper introducing its proposed new token called EIGEN. The token is designed for applications that rely on intersubjective agreement, such as prediction markets, storage services, and gaming virtual machines. Notably, the upcoming airdrop will exclude certain jurisdictions, including the United States and Canada.
By allowing users to “restake” their Ether on Eigenlayer and validate transactions on both networks, the developers claim that this solution is more secure compared to using a separate token. This approach enables Eigenlayer to inherit the security of Ethereum, rather than having to establish trust from scratch.
The white paper explains that while staked Ether will continue to be used to form consensus on verifiable on-chain data, there is also data that cannot be verified on-chain but can be easily verified by real individuals. For instance, the statement “1 BTC = 1 USD” can be easily proven false using widely available off-chain data. Eigenlayer proposes that the EIGEN token will be instrumental in forming consensus around these types of statements, which it refers to as “high concordance with intersubjectively attributable faults.”
The EIGEN token builds upon the previous work of Augur, which created the REP token to recognize intersubjective agreements. However, Eigenlayer distinguishes itself by aiming to be a universal intersubjective agreement token with applications beyond prediction markets. Additionally, the team claims that the EIGEN token can be isolated from decentralized finance (DeFi) apps when it forks, can help measure the cost of social consensus, and can compensate users who lose EIGEN due to faults.
Eigenlayer envisions the EIGEN token as a “universal work token” suitable for tasks that are not objectively attributable. Potential applications listed in the white paper include prediction markets, storage services, cloud microservices, gaming virtual machines, order-matching engines for exchanges, databases, AI training, and more.
According to Eigenlayer’s documentation, 5% of the total EIGEN supply has already been allocated to current users who have restaked ETH through the network. Additional tokens will be distributed to participants in “Season 2,” which began after a snapshot was taken on March 15. However, the team has yet to announce when Season 2 will conclude.
Speculation arose among the crypto community when a user discovered a “claims” webpage set up by the Eigenlayer team, suggesting that an airdrop of the new token may be imminent. However, the webpage is inaccessible from U.S. IP addresses and multiple VPN server addresses in Europe. Eigenlayer’s documentation confirms that the airdrop will exclude the United States, Canada, and several African and Asian countries.
Pseudonymous developer Chudnov raised concerns about a potential “yield crisis” for Eigenlayer, as the value of assets locked on the platform is growing faster than necessary to secure the network. Restaking on Eigenlayer has become a significant driver of new assets to the DeFi ecosystem, according to reports from QuickNode and Artemis.
Please note that this article was updated to clarify the percentage of EIGEN supply allocated to users in Season 1.