The ETH restaking protocol EigenLayer released its native token, EIGEN, on April 29, along with a controversial tokenomics structure and airdrop. Criticism emerged within the crypto community concerning the complexity of the token launch, specifically due to intricate terms in the whitepaper and limitations on the claiming process.
While 15% of the token supply is designated for the community, only 5% will be airdropped to existing stakers who earned points as early adopters. This has raised concerns about the unequal distribution of tokens, with over 55% going to investors and team members while early stakers receive only a small percentage.
Adding to the dissatisfaction is the fact that the initial distribution of tokens to early stakers will be non-transferable for a certain period, preventing them from selling them in the live market immediately after claiming. Some believe this limits market supply and contradicts the claimed goal of empowering token holders.
Furthermore, the protocol does not offer an Airdrop to users from the U.S., Canada, China, and Russia, excluding stakers in these countries from claiming EIGEN tokens. This goes against the decentralized nature of the crypto industry.
EigenLayer's allocation strategy has led stakers to withdraw their assets from the protocol, causing a substantial increase in the withdrawal queue, as new stakers are refraining from joining.
In response to the backlash, the Eigen Foundation announced an additional 100 EIGEN tokens for all stakers and clarified that the team and investors' tokens will be locked and only become transferable one year after the community allocation. The claiming of EIGEN tokens will begin on May 10 and remain open for the following 120 days.
