Following the restaking protocol's announcement on Monday, users who felt left out of the newly revealed Eigenlayer airdrop have taken to social media to criticize it, pointing out features like its non-transferable token structure, stringent geo-restrictions, and brief snapshot duration.
In a blog post on April 29, Eigenlayer, the second-largest protocol with $15.67 billion in total value locked (TVL), revealed the details of its much-anticipated "stakedrop."
Speculators appeared content to add their already-staked Ether (ETH) to Eigenlayer, adding more than $15.7 billion to the protocol since its founding, even though the protocol didn't formally confirm an airdrop until Monday. This was done in the hopes of receiving an airdrop in the future.
Eigen Foundation said that while 15% of EIGEN's 1.67 billion token supply would go to the community, early users who took part in Season One would only receive 5% of the initial supply. Users would be allocated the remaining amount in the subsequent "seasons."
Some users objected, saying that this was a rather meager allotment and that the paperwork describing the distribution of airdrops were "confusing."
Linear distribution and non-transferable tokens
Stakedrop detractors, however, were mostly angry about the fact that, although users may claim their EIGEN tokens from March 10 onwards, they would not be able to transfer or sell them until an unspecified later date.
According to the Eigen Foundation, this restriction was implemented to guarantee that important elements, such as payments and cutting parameters, were "well established" prior to the user base's ability to transfer EIGEN.
"We think this strategy will best support the EigenLayer ecosystem's long-term growth and maturity."
Furthermore, some users took offense at EIGEN's linear distribution model, which they claimed unjustly favored large eateries. This model states that the quantity of points customers receive directly correlates with the number of EIGEN tokens that may be claimed.
The linear method is quite foolish, to be honest. Essentially, it pleases 1000–2000 Eigen stakers at the expense of 100,000 people who will receive peanuts,” said a user on X.
Though it didn't seem to draw as much criticism at the time, several well-known protocols, including Kamino Finance and Parcl, both based in Solana, chose to use a linear model for token distribution in their respective airdrops last month. EigenLayer is not the first protocol to do so.
The severe geographic limitations that are imposed on users who want to claim their airdrops are another key source of concern for opponents.
EigenLayer's legal paperwork states that EIGEN tokens cannot be claimed by users from 30 countries, including the US, Canada, China, and Russia.
The foundation said they had gone above and above to make sure people attempting to use VPNs to get around these limitations couldn't.
It is wrong to accept those countries' stakes without compensating them. In reaction to the protocol's attempts to impose geoblocking, one user stated, "They took a very real risk for nothing."
Critics are "looking for reasons" to be upset
Henrik Andersson, the chief investment officer of Australian cryptocurrency investment firm Apollo Capital, claimed that many of EigenLayer's detractors were just "looking for reasons to be upset" despite the outcry around the stakedrop.
Eigenlayer's 15% overall user allotment was deemed "generous" by Andersson, who also included it as one of the protocol's "positive items" that stakeholders should be aware of.
The uncertainty regarding allocations to specific DeFi protocol users, he added, was incorrect, as the Foundation had made its distribution methodology fairly apparent.
"In my view, the stakedrop is the most equitable approach and efficiently resolves any problems pertaining to Sybil attacks," he continued.
Best of all, EigenLayer has made it such that you may check your stakedrop without having to sign anything or connect your wallet! Andersson declared.
April 2024, Cryptoniteuae