Eigenlayer, Ethereum Staking Protocol, Announces New Token Launch: EIGEN

Eigenlayer, an Ethereum-based staking protocol, is introducing the EIGEN token as detailed in its April 29 white paper. EIGEN will empower apps involving inter-subjective collaborations, such as prediction markets and game virtual machines. However, the airdrop will exclude the US and Canada.

Ethereum-Based Staking Protocol Eigenlayer Announces New Token Launch

Eigenlayer, a prominent staking protocol within the Ethereum ecosystem, has unveiled plans to introduce a new token dubbed EIGEN. The announcement was accompanied by the release of a whitepaper on April 29th, outlining the token's utility and distribution strategy.

EIGEN is designed as a native token for applications built around inter-subjective collaborations, such as prediction markets, gaming virtual machines, and storage solutions. However, it is noteworthy that certain jurisdictions, including the United States and Canada, will not be eligible for the upcoming airdrop of EIGEN tokens.

One of the primary benefits of EIGEN is its ability to empower NFT owners. By staking EIGEN, NFT holders can gain exclusive rights to monetize their NFTs, a feature previously restricted by the Creative Commons 0 (CC0) copyright policy implemented by MoonBirds Tokyo NFTs.

EIGEN operates on the Ethereum blockchain, leveraging the staking mechanism known as EtherHunt. Through EtherHunt, users can enhance their staking balances by depositing their Ether (ETH) into Eigenlayer and receiving rewards for validating transactions on both the Ethereum and Eigenlayer networks.

Eigenlayer emphasizes the multifaceted utility of EIGEN, extending beyond the realm of prediction markets. The protocol envisions EIGEN as a versatile tool applicable in various decentralized applications where parties need to reach consensus on statements that cannot be verified on-chain but rely on real-world verification, such as "1 BTC = 1 USD." This distinguishes EIGEN from Augur's Reputation token (REP), which is primarily tailored for prediction markets.

A limited supply of EIGEN tokens (5% of the total) has been distributed to users who have staked their ETH in the initial phase. The protocol plans to allocate additional tokens to all participants in a "Season 2" phase, although specific timelines for Season 2 and its completion have not been disclosed.

The introduction of EIGEN represents a significant expansion of Eigenlayer's capabilities. By leveraging the versatility of the token and the EtherHunt staking mechanism, Eigenlayer aims to enhance the utility of NFTs, foster inter-subjective collaboration, and contribute to the growth of the Ethereum ecosystem.