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EigenLayer Launches Season 2 Staking Airdrop, Distributing 86 Million EIGEN Tokens

EigenLayer Launches Second Season Staking Airdrop Event

EigenLayer has announced the commencement of its second season staking airdrop event, distributing 86 million EIGEN tokens to its holders. This new round of token distribution primarily targets active stakers, node operators, ecosystem partners, and community members who have been engaged between March 15 and August 15, 2024. The distribution is set to commence on or before September 17, 2024, continuing the excitement generated by the early token issuance and the first season staking airdrop.

Token Allocation for Second Season Staking Airdrop

The second season staking airdrop will allocate approximately 5% of the total supply of EIGEN tokens, amounting to 86 million tokens, to various stakeholders within the EigenLayer ecosystem. Out of these, 70 million tokens will be specifically allocated to active stakers and node operators during the second season, distributed based on each participant’s ETH staking ratio to incentivize those directly contributing to the platform’s security and operations.

Additionally, up to 10 million tokens are reserved for active validation service providers (AVS), Rollup, liquid staking protocols, and other contributors to the EigenLayer network. Another 6 million tokens will be distributed to community members, including open-source contributors, early supporters, and other advocates. Community members must verify their social identity by linking their wallet address with social accounts through Eigen Foundation’s validation site by September 11 to claim these tokens.

EigenLayer enables users to deposit and stake Ether from various liquid staking tokens, utilizing these funds to protect third-party networks or AVS. This unique approach aims to offer robust security services to other blockchain networks while rewarding participants through staking airdrop events. The protocol continues to expand its influence by attracting different segments of the staking community through targeted token distributions.

TVL Trends Amid Second Season Staking Airdrop Announcement

The announcement of the second season staking airdrop comes at a time when the total value locked (TVL) in the staking sector is experiencing a widespread decline. EigenLayer’s TVL has significantly dropped from its peak of $20.1 billion in June to $11.1 billion. This decline is part of an overall trend, with other platforms like Renzo, Puffer, Kelp, and Swell also witnessing notable decreases in TVL.

Analysts attribute this decline to the conclusion of the initial airdrop events and the launch of native tokens for major protocols, including EigenLayer’s EIGEN and Renzo’s REZ tokens. These launches typically result in a short-term surge in participation, followed by a natural outflow of funds once the incentives diminish.

In contrast to the decline in TVL seen in other staking protocols, Symbiotic has experienced significant growth since its launch in June, surpassing $1.5 billion in TVL. Unlike its competitors, Symbiotic has yet to introduce native tokens, which may be enticing users to continue flowing into the platform in anticipation of future returns.

EigenLayer’s fully diluted supply of tokens stands at 1.67 billion, currently non-tradable but estimated to have a price of approximately $2.5 per token according to market forecasts like Hyperliquid. This translates to a market valuation of around $4.2 billion, a significant correction from the initial trading price range of $7 to $10 estimated by the market at the project’s outset.

As EigenLayer prepares for the second season staking airdrop, the protocol continues to refine its role in the evolving decentralized finance landscape by incentivizing active participants, protecting various blockchain services, and addressing challenges posed by the decline in TVL and market volatility.

(CoinDesk Leak: EigenLayer Allows Employees to Receive Ecosystem Airdrops, Generates Millions in Profit)

Further Reading

  • Details and Eligibility for EigenLayer’s Second Season Distribution
  • Rising Competitor Symbiotic Surpasses $1.5 Billion
  • Reviewing EigenLayer’s Staking Utilities
  • Impact of TVL Decline on EigenLayer and the Staking Sector

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