EigenLayer Rolls Out Phase 2 of Season 1 Airdrop, Expanding Claims for Ethereum Restaking Rewards

2024-07-03, 03:03

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## [TL; DR]
Eigenlayer has launched its season 1 second phase airdrop program.

After attaining a TVL of $20.09 million Eigenlayer has become the second largest DeFi protocol.

Competition in the restaking sector has increased after Symbiotic joined the industry.

## Introduction
Eigenlayer is one of the few crypto projects which has out-rolled an airdrop program to reward its users for their loyalty. Although there has been a reduction in the number of crypto airdrops some seasoned projects rely on them to increase their influence within the digital sector and to expand the sizes of their communities. This article delves on EigenLayer’s phase 2 of season 1 airdrop program.

## Eigenlayer Airdrop Program: Phase 2 of Season 1 
On 19 June EigenLayer, the leading <a href="/price/ethereum-eth" target="_blank" class="blog_inner_link">Ethereum</a> restaking protocol, announced the launch of its phase 2 of season 1 crypto airdrop program. Its users who interacted with the protocol through the various liquid restaking token (LRT) protocols which include Kelp, Equilibrium and Pendle are eligible for the crypto token airdrop which runs from 15 June  to 7 September this year. In other words, all eligible users of the different liquid restaking protocols that are integrated with Eigenlayer will receive an allocation of the airdrop.

It is important to note that during this phase the eligible users should have staked their liquid restaking tokens (LRTs) before 15 March. As a fact, the Eigenlayer blockchain airdrops are part of a multi-phase program that will distribute the Eigen token to its community.

During this phase of Eigenlayer airdrop there will be a distribution of nearly 113 million $EIGEN tokens. The Eigen Foundation has promised to give the users who claim their allocation within the first 24 hours a X2.5 bonus.

## Eigenlayer Airdrop Distribution: The Allocation of the Tokens
Basically, the Eigenlayer Foundation has allocated the tokens to the liquid restaking token (LRT) protocols based on how they have interacted with its protocol. It used the criteria it applied during the first phase. Therefore, this also means that each eligible phase 2 wallet will also receive a 100 EIGEN bonus. During the first phase, which ended recently, nearly 113 million Eigen tokens were distributed.

Posting on its blog, the [Eigen Foundation said](https://blog.eigenfoundation.org/claims-s1-p2/#:~:text=The%20Eigen%20Foundation%20reserved%20an,by%20the%20relevant%20LRT%20protocol. "Eigen Foundation said"), “The Eigen Foundation reserved an allocation for each liquid restaking token protocol based on its interactions with the EigenLayer protocol.  For these LRT protocol allocations, we followed the same criteria as Phase 1. No penalty was applied.”

It added, “The relevant LRT protocol determined the specific allocation provided for your address.  Each LRT protocol produced its own allocation list with respect to its end users.” To ensure transparency the Foundation conducted a “Sybil analysis and risk analysis to finalize the eligible addresses and their corresponding claims.”

## EigenLayer’s Upcoming Airdrop Announcement and Season 2
Once the season 1 airdrop closes Eigenlayer aims to unveil its season 2 one. To participate in the second season the users should remain active [through staking more LRTs](https://www.gate.io/learn/articles/eigenlayer-staking-a-potential-wealth-secret-or-hidden-risk/3057 "through staking more LRTs"). The Foundation said that it will release the details of the season 2 EIGEN airdrop in coming weeks. The team aims to unveil another 5% stakedrop for that season.

## EigenLayer’s Market Position in the Defi Space
After attaining a DeFi total value locked of over $20 billion on 6 June, the Eigenlayer has become the second largest DeFi protocol based on the TVL criteria. At present, Lido is the number 1 ranked DeFi protocol. EigenLayer’s TVL that stood at $1.4 billion in May grew by 1,335% to reach the current value of $20.09 billion.

Launched in 2023, [Eigenlayer is a marketplace](https://www.gate.io/blog_detail/2793 "Eigenlayer is a marketplace") where Ethereum stakers can [restake their liquid restaking tokens (LRTs)](https://www.gate.io/learn/articles/how-liquid-are-liquid-restaking-tokens/2535 "restake their liquid restaking tokens (LRTs)") and earn DeFi reward for that. The restaked LRTs are used to secure third-party actively validated services (AVSs) built on the Ethereum network.

## Future of EIGEN Tokens:  “Universal Intersubjective Work Token” Concept
Recently, the Eigenlayer protocol announced the release of its governance token, EIGEN. The Foundation has presented the EIGEN token as The Universal Intersubjective Work Token which will be used for managing its restaking infrastructure consensus mechanism as well as the Actively Validated Services (AVS) ecosystem by means of intersubjective staking. Basically, the EIGEN will support the AVSs as it will act as a reward token for honest behaviour and penalizes malicious actions by means of intersubjective forking. It will fork and slash in response to intersubjective faults which the EIGEN stakers may commit across the AVSs within the Eigenlayer DeFi ecosystem.

Through its [blog post, the Eigenlayer shed more light](https://consensys.io/blog/eigenlayer-decentralized-ethereum-restaking-protocol-explained "blog post, the Eigenlayer shed more light") on how the system works. It stated: “Validating for a service is not risk-free. The cryptoeconomic security of a staked service comes from the ability to detect and penalize (slash) malicious actions, deterring such behavior.”

It continued, “Similar penalties apply to AVS operators to ensure service reliability and discourage malicious behavior. Restakers trust their chosen operators for honesty (avoiding slashable offenses) and competence (avoiding inactivity penalties), similar to the concerns of individuals choosing between staking services on Ethereum.”

Read also: [EigenLayer Protocol: Reshaping Ethereum and Potential Network Health Concerns](https://www.gate.io/blog_detail/2793/eigenlayer-protocol-reshaping-ethereum "EigenLayer Protocol: Reshaping Ethereum and Potential Network Health Concerns")

## Developments in the Sector: The Emergence of Staking Wars
For a long time, Eigenlayer dominated the restaking sector until recently when other players like Symbiotic, another Ethereum restaking protocol, started operating. Soon Symbiotic Ethereum got support from Lido and Mellow, among others. That development marked the emergence of restaking wars. Two days after launching its restaking platform Mellow announced that it was targeting an initial TVL of $245 million. As more restaking platforms come onto the market, competition in the sector will rise further.

## Conclusion 
Eigenlayer has rolled out its season 1 second phase airdrop where close to 113 million [EIGEN tokens](https://www.gate.io/how-to-buy/eigenlayer-eigen "EIGEN tokens") will be distributed. Once the first season concludes the second one will begin. In the meantime competition [in the restaking sector](https://www.gate.io/learn/articles/the-risks-of-restaking/1558 "in the restaking sector") has increased after several other players like Symbiotic have joined in.

<div class="blog-details-info">
<div>Author:* Mashell C.*, Gate.io Researcher
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
</div>