EigenLayer will distribute 86 million EIGEN tokens, rewarding stakers, node operators, and ecosystem partners as part of its “Season 2 Stakedrop,” amidst a decline in TVL across the platform.
EigenLayer, a staking protocol built on Ethereum, has announced a significant token distribution as part of its “Season 2 Stakedrop.” A total of 86 million EIGEN tokens will be distributed to users, which accounts for approximately 5% of the token’s total supply. This distribution is designed to reward key stakeholders, including stakers, node operators, ecosystem partners, and the wider EigenLayer community.
Stakers and node operators will receive the majority of the tokens, approximately 70 million EIGEN, while ecosystem partners will be allocated 10 million tokens, and 6 million tokens will be distributed to the community. The distribution is scheduled to begin on September 17, 2024.
Declining Total Value Locked (TVL)
Despite the upcoming token drop, the protocol’s Total Value Locked (TVL) has experienced a sharp decline. TVL, which once peaked at $15.7 billion, has now fallen to $11.3 billion according to data from DeFiLlama. This drop is partially attributed to falling Ether prices, which have decreased from July’s highs of $3,536 to $2,388, leading to reduced yields and outflows following previous airdrop campaigns.
EigenLayer’s Unique Offering
EigenLayer allows users to restake their Ether (ETH) to secure additional networks or protocols, offering the potential for additional yield. This restaking model has made EigenLayer an attractive platform for yield-seeking investors. However, the recent drop in TVL highlights broader challenges faced by restaking protocols in the current market, with other platforms such as Renzo and Karak experiencing similar declines.
Disclosure
This information is provided for general knowledge. It is not financial advice. Always conduct your own research before investing in cryptocurrency projects.
