EIGEN Tokens: Critics doubt their true flotation and transparency

The FUD around EigenLayer tokenomics

How private investors are allocated tokens for pre-launch generally:

1. Projects want you to be influential if you have many Twitter followers or are known as a KOL.
2. If a project gives you an attractive price for tokens that are locked, you will agree to make the investment.
3. When the project is launched, it will be announced. “token generation event” Your locked tokens will be able to trade once the tokens are released from your lock. “cliff” period.
4. The cliff typically lasts a year. (In bull markets, it can be reduced to as little as three or six months).
5. Your tokens will enter the cliff once it is reached. “vesting” period — typically two to four years — during which your locked tokens begin to slowly unlock and become liquid and tradable.

The system is set up in this manner to align incentives between projects and investors over the long term to develop a successful project and to deter predatory duping of retail investors.

EigenLayer made the native EIGEN token transferable on Tuesday, amid criticisms about EIGEN’s opaque float. 

This is very important because the low-float tokens have a higher volatility and less price discovery. They are predatory to the unwary retail investor who looks at them with lust on Binance’s mobile app.

After accounting for unclaimed EIGEN and the 73 million EIGEN already restaked on EigenLayer, Kairos Research estimated that the real float of EIGEN was about 2.42% — a float even shockingly lower than Worldcoin’s (WLD) ~4.9% — though EigenLayer disputed that number.

The complexity increases.

It is important to note that the word “you” means “you”. “locked” Investors in EigenLayer have apparently not locked up all EIGEN tokens.

EigenLayer’s investors are able to stake their EigenLayer investments during the locked-cliff period. “locked” You can then sell the rewards you receive on the open marketplace. The documents that were just updated state:

If locked tokens generate a return, that’s a different story. “locked” token.

It’s becoming more common with L1 projects like Sui, Sei, and Aptos.

Yield-generating “locked” The purpose of locking private tokens up for investors is defeated by tokens “incentive alignment,” It’s also a double-dipping. Even worse, the reward pool is doubled, and could be used for productive capital. Retaking and Securing EigenLayer AVS.

EigenLayer is not without its defense. There’s at least a ceiling on these rewards. According to its documents, 1% ($60,000,000) of EIGEN’s total supply is emitted annually as rewards. 25% is for EIGEN holders, the remaining 75% is given to ETH investors on EigenLayer.

What EigenLayer is talking about “restaking,” The company also considered its own investors.

Chart of the Day

USDS heads skyward:

Sky’s USDS has reached $1.1 billion in value since it was launched exactly one month prior. Holders of Maker’s DAI can choose to convert it to Sky’s USDS.

USDS, DAI and their combined market caps are now at nearly $5.9 Billion. This is the highest value it has been in a single year.

Degen Corner

Bitcoin staking is simple.

BOB stake for Bitcoin/Ethereum was previously discussed. “hybrid L2” BOB is a provider of liquid staking for the Lightning Network, as well as Stroom.

P2P.org, a leading provider of staking as a service, today launched a Babylon staking api to allow exchanges, wallets, and custodians to easily integrate bitcoin staking into their platform.

Individual users and institutional investors don’t have to switch to an unfamiliar interface to get bitcoin stake rewards. They can simply use their familiar platforms. Candidate exchanges, wallets, and LRT providers.

This API was designed to make it easier for you to create, sign and broadcast bitcoin transactions.

In terms of future updates, P2P plans to add features like batch staking — allowing users to generate multiple staking transactions from a single address. It will allow institutions to stake bitcoins efficiently, before the Babylon BTC limit is reached.

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