EigenLayer, a Ethereum restaking protocol, has initiated the token-claim process for Season 1, Phase 1 rewards. Users eligible for the new EIGEN token can now acquire it through the claims process, although the tokens are currently nontransferable. The EIGEN token is set to become transferable once new features are implemented by the development team, with a tentative target date of September 30 for these implementations. Users must claim their tokens before the process closes on September 7, as unclaimed tokens after that date will not be distributed. The claims process has unlocked 6.05% of the total supply of EIGEN tokens, with an additional 0.7% to be unlocked in mid-June during “Phase 2”.
EigenLayer’s airdrop primarily caters to users who restaked Ether or its liquid staking derivatives on the protocol before March 15. Users who hold liquid restaking tokens (LRTs) can also claim their rewards, as long as their activities do not fall under “Phase 2”. Users who restaked on EigenLayer between March 15 and April 29 are eligible to claim 100 bonus tokens immediately, with the majority of their claims becoming available in mid-June alongside other Phase 2 participants. Despite the excitement surrounding the airdrop, it has sparked controversy within the decentralized finance (DeFi) community, with some users criticizing the ban on VPN servers, the distribution of nontransferable tokens, and the perceived short snapshot period.
In response to concerns about sybil farming, LayerZero Labs, a cross-chain interoperability protocol, has pledged to tackle the issue by excluding sybil farmers from receiving allocations in future token generation events. The project plans to conduct an internal investigation to identify and exclude sybil farmers, while also launching a reward program that offers a 10% bonus of the intended token allocation to bounty hunters who identify additional sybil users. LayerZero Labs recently completed the first snapshot for its highly anticipated airdrop. The project announced its plans to distribute tokens to early adopters in the first half of 2024.
The EIGEN token claims process is ongoing, with users required to claim their tokens before the deadline on September 7. Users in over 30 jurisdictions, including the United States, Russia, China, and Canada, are not eligible to claim EIGEN tokens. The claims process has unlocked a portion of the total supply of EIGEN tokens, with additional tokens set to be unlocked in mid-June during Phase 2. EigenLayer users who restaked Ether or its liquid staking derivatives before March 15 are eligible to participate in the airdrop, with bonus tokens available to users who restaked between March 15 and April 29. The controversy surrounding the airdrop has led to mixed reactions within the DeFi community, with some praising it as a potentially life-changing opportunity and others criticizing its restrictions on VPN servers and nontransferable tokens.
LayerZero Labs is taking proactive steps to address the issue of sybil farming by conducting an internal investigation to identify and exclude sybil farmers from receiving allocations in future token generation events. The project also plans to reward bounty hunters who help identify additional sybil users by offering them a 10% bonus of the intended token allocation. LayerZero Labs recently completed the first snapshot for its upcoming airdrop, with tokens set to be distributed to early adopters in the first half of 2024. The project’s efforts to mitigate sybil farming highlight the importance of ensuring fair and equitable distribution of tokens in decentralized ecosystems.
