Eigen Foundation Expands EIGEN Token Allocation by $280M To Address Concerns

• In response to community criticism and to boost accessibility for early adopters, Eigen Foundation has announced that it will allocate an additional 100 EIGEN tokens.

Eigen Foundation Expands EIGEN Token Allocation by $280M To Address Concerns

In response to community criticism and to boost accessibility for early adopters, Eigen Foundation has announced that it will allocate an additional 100 EIGEN tokens, currently valued at approximately $1,000, to over 280,000 users. 

Updates on the EIGEN Stakedrop pic.twitter.com/1cwSForJnx

— Eigen Foundation (@eigenfoundation) May 2, 2024

The foundation aims to accelerate the broader distribution of EIGEN by providing extra tokens to the wallet addresses of EigenLayer depositors.

The decision to increase the token allocation comes after EigenLayer faced criticism for its initial plans regarding the token genesis event. 

The linear distribution model of the airdrop, which favored larger holders known as whales, and the lack of clarity in documentation were among the concerns raised by the community. 

A recent report from Blockworks revealed that the top 2% of total EigenLayer depositors would receive approximately 90% of the EIGEN airdrop allocation, leading to dissatisfaction among non-whale participants.

See Also: Layerzero Completes Airdrop Snapshot For Upcoming ZRO Token Launch

While still in the pre-launch stage, EIGEN is currently trading at $10.11 on decentralized exchange Aevo. 

With the new allocation, the total value of tokens distributed to users amounts to around $280 million. The current price of EIGEN on Aevo sets the fully diluted valuation of EigenLayer at $16 billion.

Robert Drost, the executive director of the Eigen Foundation, acknowledged the feedback received and mentioned the consideration of high gas costs during various periods. 

Drost expressed the foundation’s commitment to ensuring that all participants were properly accounted for. 

The announcement also outlined that EIGEN allocations for investors and team members would be locked up for one year after the token becomes transferable, which is expected to occur by September 30 in conjunction with the deployment of certain features such as slashing.

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