Learn Concept: Navigating the Crypto Airdrop Landscape: A Case Study on EigenLayer's EIGEN Tokens and Ethereum ETF Proposals

By: Eva Baxter

The crypto world often sees novel ways of distributing tokens, and one approach coming into prominence is an 'Airdrop'. Airdrops are events where a blockchain project distributes free tokens to community members, often as a reward for loyalty or completing simple tasks. A recent example of this is the unveiling of the EIGEN token airdrop by EigenLayer, a blockchain restaking ecosystem.

EigenLayer has begun its anticipated airdrop season, where users can claim part of the initial EIGEN token supply. The first phase offers 6.05% of the total supply, starting from May 10, with the claimable amount increasing to 6.75% by mid-June. Up to 113 million EIGEN tokens are up for grabs in Season 1, with EigenLayer committing 15% of the initial token supply to the community.

Interestingly, these tokens are currently non-transferrable, with transfers planned to be enabled with the launch of new features and further decentralisation by September 30, 2024. It's important to also consider the evolving strategies of investment firms in their Ethereum ETF proposals with some, including Ark Invest and 21 Shares, removing plans for staking - staking part of the fund's assets via third-party providers and using received Ethereum as a form of staking reward from their filings.

The case of EigenLayer's EIGEN token distribution and the strategy shifts in Ethereum ETF proposals illustrate the complex and ever-changing nature of the crypto ecosystem.