As a researcher with experience in the crypto space, I understand the excitement and anticipation that comes with potential airdrops from major protocols like Eigenlayer. However, I also recognize that such events can lead to disappointment and frustration for some users.
As an analyst, I’ve noticed some strong reactions from users who felt excluded from the Eigenlayer airdrop announcement earlier this week. They’ve expressed their disappointment with several aspects of the event. Specifically, they’ve criticized the non-transferable nature of the tokens, the strict geo-restrictions, and what they perceive as a short snapshot period.
In a blog post published on April 29, Eigenlayer, the second largest protocol with a total value locked (TVL) amounting to $15.67 billion, revealed the details of its anticipated “stakedrop” event.
Even before the formal confirmation of an airdrop by the protocol on Monday, eager speculators have been actively staking their Ethereum (ETH) with Eigenlayer. This proactive action has led to a significant increase in the protocol’s total value, amounting to over $15.7 billion since its inception. The hopeful investors are banking on the possibility of receiving an airdrop at some point down the line.
In the announcement, Eigen Foundation revealed that they will set aside 15% of the entire EIGEN token supply, which amounts to 1.67 billion tokens, for the community. Initially, just 5% of this amount, equivalent to 83.5 million tokens, will be reserved for users who joined during Season One. The rest of the tokens will be distributed among participants in subsequent ‘seasons’.
As an analyst, I’ve come across some feedback from users who found the document allotment for the airdrop to be rather limited. They expressed their concerns by stating that the information regarding the airdrop distributions seemed “perplexing” or “hard to comprehend.”
Untransferrable tokens and linear distribution
Critics of stakedrop voiced their main concerns over the inability to transfer or sell EIGEN tokens right away, despite being distributable from March 10th onwards.
Before the EIGEN token could be transferred among users, the Eigen Foundation implemented controls to ensure that crucial features such as payment functionality and slashing parameters were firmly in place.
“We believe this approach will best support the long-term growth and maturity of the EigenLayer ecosystem.”
As a data analyst examining user feedback regarding EIGEN’s linear distribution model, I’ve noticed some users raising concerns. Specifically, they argue that this model unfairly advantages larger stakeholders due to the direct correlation between the number of points earned and the quantity of claimable EIGEN tokens.
“Frankly, I find the linear approach to be ill-conceived. It primarily benefits around a thousand to two thousand Eigen stakers at the expense of approximately 100,000 individuals who will receive meager returns.”
As a crypto investor, I’ve noticed that EigenLayer is employing a linear model for token distribution, which isn’t a novel approach in the DeFi space. In fact, other notable projects like Kamino Finance and Parcl on the Solana blockchain have used this same distribution method in their recent airdrops. However, these projects didn’t seem to face the same level of criticism when they implemented it.
A significant issue raised by critics is the strict geographical limitations imposed on users trying to collect their airdrop rewards.
As a researcher examining EigenLayer’s legal documentation, I have come across information stating that users residing in thirty specified countries, which include but are not limited to the United States, Canada, China, and Russia, are restricted from claiming EIGEN tokens.
The foundation implemented additional measures to prevent users from bypassing restrictions using Virtual Private Networks (VPNs).
“It’s unfair to accept stakes from those countries but not compensate them. They assumed significant risks without receiving any rewards.”
As a crypto investor, I’ve come across numerous instances where anticipated events in the cryptocurrency world didn’t turn out as hoped. One such instance was the EIGEN airdrop on platform X, which was described by an anonymous user with a sense of disappointment using the term “bummers.” These unfavorable factors dampened the excitement surrounding the expected rewards from the airdrop.
Critics are ‘trying to find reasons’ to be upset
In spite of the controversy surrounding EigenLayer and the criticism directed towards it, Henrik Andersson, the CIO of Apollo Capital, pointed out that some detractors were merely looking for causes for discontent.
In a conversation with CryptoMoon, Andersson characterized Eigenlayer’s distribution of a 15% share to users as “generously sizeable,” and included this aspect among the numerous “advantageous features” found in the protocol’s staking reward mechanism.
The Foundation clarified its distribution model, and noted that the misunderstanding regarding allocations for specific users of Decentralized Finance (DeFi) protocols was unwarranted.
He commented, “A linear stakedrop is the most equitable approach in my view, resolving concerns over Sybil attacks by its very nature.”
“I appreciate the convenience of being able to view my stakedrops without having to link my wallet or sign any documents, kudos to EigenLayer for making this possible.”
Read More
- I’m a Celebrity voting figures revealed after Danny Jones crowned winner
- CTXC PREDICTION. CTXC cryptocurrency
- RIF PREDICTION. RIF cryptocurrency
- WRX PREDICTION. WRX cryptocurrency
- GFI PREDICTION. GFI cryptocurrency
- FXS PREDICTION. FXS cryptocurrency
- TRB PREDICTION. TRB cryptocurrency
- OKB PREDICTION. OKB cryptocurrency
- IOTX PREDICTION. IOTX cryptocurrency
- TRAC PREDICTION. TRAC cryptocurrency
2024-04-30 06:11