EigenLayer Faces Criticism for Unclear Token Allocation
EigenLayer is in sizzling water after admitting to not totally disclosing the way it allotted its insider tokens. The platform launched its token on Oct 1st, and after seeing an preliminary value surge, the worth dropped by 22%.
When EigenLayer launched in April, it secured substantial investments, together with $100 million from Andreessen Horowitz and others. The corporate has beforehand introduced its objective to compete with Lido, the biggest liquid restaking protocol on Ethereum.
The shaking platform initially promised {that a} majority of the EIGEN token provide could be locked for not less than a yr, with a portion put aside for early traders and contributors. Particularly, 29.5% of the whole provide was allotted to early traders, whereas 25.5% was designated for contributors.
The platform claimed that the tokens had been underneath a “full lock” settlement, that means that insiders wouldn’t be cashing out rewards. Nonetheless, it has come to mild that these insiders have been capable of entry their rewards.
EigenLayer acknowledged in an announcement on X that early traders might promote the rewards generated from their locked token. This, nevertheless, contradicts the sooner promise of a “full lock”.
This has made its group members spark frustrations, as they believed that the locked tokens mustn’t yield rewards that may be traded.
Regardless of anger in the direction of the VC’s, merchants remained optimistic in the direction of the token. EIGEN, has made a robust market debut following its unlock on October 1, 2024
On the time of writing, the token is buying and selling for $3.34, a 15% drop within the final 24 hours after spiking to $4.44 when it was launched. The marketcap of EIGEN stands at $624,124,457 and ranks eighty fifth,
Additionally Learn: EigenLayer’s EIGEN Token Debuts, Surges into Top 100 Rankings
