Users who felt left out of the recently announced EigenLayer airdrop slammed the re-staking protocol’s announcement on Monday, highlighting its non-transferable token structure, aggressive geo-restrictions and apparently short snapshot period.
EigenLayer, the second-largest protocol with $15.67 billion in total value locked (TVL), revealed details of its long-anticipated “stakedrop” in a blog post on April 29.
Even though the protocol had not officially confirmed the airdrop as of Monday, speculators seemed to be okay with just adding already staked Ethereum (ETH) to the EigenLayer. Since the protocol launched, it has added more than $15.7 billion, with some hoping to receive an airdrop. Points of the future.
In the announcement, the Eigen Foundation stated that 15% of EIGEN’s total supply of 1.67 billion tokens will be allocated to the community, but only 5% of the initial tokens will be allocated to early users who participated in Season 1. The remaining allocations will be distributed to users in the next “season”.
Some users protested that this was a relatively small allocation, and assert Documents detailing airdrop allocations were “confusing.”
Non-transferable tokens and linear distribution
However, Stakedrop critics have expressed most of their anger over the fact that although users can claim EIGEN tokens starting March 10, they will not be able to transfer or sell them until an undisclosed date.
The Eigen Foundation wrote that these controls were put in place to ensure that key features, including payment and drawdown parameters, were “well established” before EIGEN became transferable between users.
“We believe this approach will best support the long-term growth and maturity of the EigenLayer ecosystem.”
Additionally, some users have targeted EIGEN’s linear distribution model. This means that the number of points a user earns is directly tied to the number of EIGEN tokens they can claim, unfairly favoring large resellers.
“Honestly, the linear approach is fucking stupid. Basically, you make 1000-2000 Eigen stakers happy at the expense of the 100,000 Eigen stakers who will get peanuts.” shared There is one user on X.
However, EigenLayer is not the first protocol to utilize a linear model for token distribution, with several major protocols including Solana-based protocols Kamino Finance and Parcl opting for the same distribution model in their respective airdrops last month. It appears to have received a similar level of criticism at the time.
Another major concern of critics was the harsh geographic restrictions imposed on users trying to claim airdrops.
According to EigenLayer’s legal documents, users in 30 countries, including the United States, Canada, China, and Russia, cannot claim EIGEN tokens.
The foundation noted that it has taken additional steps to ensure that users who try to circumvent these restrictions using VPNs cannot do so.
“It is not right to receive shares from those countries and not compensate them. They took a real risk for nothing.” wrote One user responded to the protocol’s geo-blocking efforts.
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Critics are trying to find reasons to be angry
Despite the outrage over the stake drop, Henrik Andersson, chief investment officer at Australian cryptocurrency investment firm Apollo Capital, said Many of EigenLayer’s critics were simply “trying to find reasons to be upset.”
In an interview with Cointelegraph, Andersson described EigenLayer’s total allocation of 15% to its users as “generous” and considered it one of several “positive items” included in the protocol’s stake drop process.
He explained that the foundation has made its distribution model very clear and that any confusion regarding allocation to users of specific DeFi protocols is misplaced.
“Stakedrop is linear and in my opinion the fairest way to do it and effectively eliminates the problems associated with Sybil attacks,” he added.
“The most important thing is that you don’t have to link your wallet or sign anything to see your stake drop. Good job EigenLayer!” Andersson said.
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