EigenLayer Criticized for Lack of Token Transparency
EigenLayer is presently underneath scrutiny after admitting that it didn’t totally disclose the allocation particulars of its insider tokens. The platform launched its EIGEN token on October 1st, initially experiencing a worth surge. Nonetheless, shortly after, the token’s worth dropped by 22%, elevating issues amongst traders and the group.
EigenLayer Token
When EigenLayer first launched in April, it secured important investments, together with a $100 million contribution from Andreessen Horowitz and different distinguished traders. The corporate positioned itself as a competitor to Lido, the main liquid restaking protocol on Ethereum. On the time of the token launch, EigenLayer assured its group {that a} majority of the EIGEN token provide would stay locked for not less than a 12 months. Particularly, 29.5% of the overall provide was allotted to early traders, and 25.5% was designated for contributors.
Group Frustration and Market Response
EigenLayer had promised that the allotted tokens have been underneath a “full lock” settlement, which means insiders wouldn’t be capable of money out their rewards. Nonetheless, it has now been revealed that these insiders have accessed and bought their rewards, contradicting the preliminary promise. In an announcement on X (previously Twitter), EigenLayer clarified that early traders may certainly promote the rewards generated from their locked tokens. This revelation has sparked frustration amongst group members who believed that locked tokens wouldn’t yield tradable rewards.
Regardless of the backlash from the group and issues over the transparency of token allocation, merchants stay optimistic in regards to the EIGEN token. Following the unlock on October 1, 2024, EIGEN made a robust market debut, indicating continued curiosity and confidence from traders.
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