Users React to EigenLayer Airdrop with Mixed Feelings

EigenLayer, a protocol for Ethereum restaking, recently announced an airdrop plan that garnered both praise and criticism from users.

The protocol, boasting a total value locked (TVL) of $15.67 billion, revealed details of its anticipated “stakedrop” in a blog post on April 29. Despite never officially confirming an airdrop until then, many had staked their Ether with EigenLayer, adding substantial value to the protocol in anticipation of potential rewards.

Eigen Foundation outlined its plan to allocate 15% of the total EIGEN token supply to the community. However, only 5% of this would be distributed initially to early users who participated in Season One, with the remainder distributed in subsequent ‘seasons.’

While some users found this allocation generous, others felt it was relatively small and criticized the documentation for being confusing.

Issues were also raised regarding the non-transferable nature of the tokens and the linear distribution model employed. Users expressed frustration that they could claim tokens but not transfer or sell them immediately. Eigen Foundation defended this decision, stating it was to ensure the stability of the ecosystem before allowing transfers.

Critics also highlighted the geographic restrictions imposed on users from 30 countries, including the United States and China, preventing them from claiming tokens. Some saw this as unfair, considering the risk these users had taken.

Despite the backlash, Henrik Andersson, Chief Investment Officer of Apollo Capital, viewed EigenLayer’s allocation as generous and praised its transparent distribution model. He believed that much of the criticism stemmed from users trying to find reasons to be upset rather than genuine concerns.

Overall, the reaction to EigenLayer’s airdrop was a mix of disappointment and appreciation, with some users feeling let down by the restrictions and others acknowledging the positive aspects of the distribution process.