EigenLayer airdrop draws criticism amidst transferability concerns, allocations

The details of the EigenLayer airdrop have finally been announced, and it’s been met with both applause and serious scrutiny.

The launch plan includes allocating 45% of the 1.67 billion tokens to the community, with one-third of that portion distributed via an airdrop spanning multiple seasons. In the first season, 5% of the tokens will be distributed to two segments and those who qualify for the protocol will be especially rewarded.

The primary concern is the restriction on token transferability after launch.

“The token will be non-transferable for months upon launch,” EigenLayer said, aiming to allow time for decentralization and build consensus on its usefulness and governance.

However, this limitation and allocation of tokens led to discontent, especially among airdrop recipients.

“The 15% total supply allocated to community airdrops is 50% above the industry standard, so I don’t think the ‘they’re not considering the community’ criticism is valid,” said Bankless Co-Owner David Hoffman. aforementioned By emphasizing the inequality over x.

OK, the negative feedback I collected about $EIGEN airborne

– People don’t like the non-transferability period
– People don’t like geo-blocked claiming website

Another thing?

— DavidHoffman.eth/acc🦇🔊 (@TrustlessState) April 29, 2024

The issue mirrors the controversy around the Starknet airdrop in February. Tokens for investors and core contributors are set to unlock shortly after trading begins, following a one-year vesting period behind the scenes. Starknet delayed these unlocks after facing backlash.

Further criticism came as the airdrop excluded certain countries, including the US and Canada, and apparently blocked VPN users due to regulatory concerns. This selective availability has disappointed some userspointed out inconsistencies between platform access and airdrop participation.

In addition, the complexity of the airdrop’s structure and basic concepts such as intersubjective bifurcation described It was discussed in the whitepaper as part of the Universal Intersubjective Working Symbol.

confusion, confusion The eligibility of Pendle users, who were initially thought to be excluded from the airdrop, has also been revealed. Eigen Foundation later clarified Market reaction to Pendle has remained moderate, with a decline of 18% since the announcement, according to CoinGecko.

Many believe that the EigenLayer criticism is the reason why Ethereum (ETH) is in the red today. The platform experienced a significant increase in withdrawals with approximately 150,000 ETH; The equivalent of $457 million was removed, Dune Analytics and DefiLlama reported.