Originally published on: December 06, 2024
EigenLayer, the leading restaking protocol on Ethereum, is revamping its rewards program to provide increased flexibility to both protocols and restakers. In a recent blog post on Dec. 6, EigenLayer announced these exciting upgrades that are set to revolutionize the restaking landscape.
The new changes allow third-party protocols utilizing EigenLayer, known as actively validated services (AVSs), to allocate rewards to validators based on their performance. Moreover, validators, or “operators,” now have the freedom to set fee rates independently, offering more control and customization within the EigenLayer ecosystem.
According to EigenLayer, these upgrades are designed to enhance flexibility, efficiency, and personalization in the rewards system. The highly anticipated launch of these updates is scheduled for January on the mainnet.
Since its inception in 2023, EigenLayer has become a powerhouse in the restaking realm, securing numerous AVSs with an impressive $19 billion in restaked collateral, as reported by DefiLlama. Restaking involves leveraging already staked tokens to secure multiple protocols simultaneously, making EigenLayer an invaluable platform for investors looking to maximize their returns.
Currently, EigenLayer boasts 20 live AVSs on its mainnet, with many more in the development pipeline. Notable AVSs include EigenDA by Eigen Labs and ARPA Network, specializing in trustless randomization.
EigenLayer’s native token, EIGEN, was unlocked on Oct. 1, offering enhanced security against various faults beyond what traditional proof-of-stake tokens like EtherETH can provide. EIGEN is currently trading at around $4.92, reflecting a fully diluted market capitalization of nearly $8.25 billion, according to CoinMarketCap.
In a strategic move on Sept. 17, EigenLayer initiated a programmatic incentives program to attract more restakers. This program rewards restakers with EIGEN emissions equivalent to approximately 4% of the total token supply.
With EigenLayer’s founder, Sreeram Kannan, emphasizing the value of the programmatic rewards based on AVS participation, high engagement is expected among stakeholders. As more AVSs pay fees, an increase in value allocation is foreseen, benefitting both stakers and operators.
EigenLayer’s rewards program has already gained traction, with ARPA Network distributing 14,000 native ARPA tokens weekly to restakers since September.
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