$EIGEN Staking Guide

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What is $EIGEN?

While ETH restaking offers a mechanism for penalising objectively attributable faults, extending Ethereum security to other protocols. The new EIGEN token introduces a complementary mechanism designed to specifically address “intersubjective” faults – faults that are impossible to address via ETH restaking alone. Intersubjective faults are instances of misbehaviour that cannot be objectively identified on-chain, yet any two reasonable observers would agree that fault occurred and a penalty is deserved.

In simpler terms, it is basically staking, where the slashing will be imposed by a mechanism like formalized social disputes because slashing conditions cannot be tracked on-chain. Another analogy for this is governance: voting for/against a proposal that suggests charging malicious actors. Read more about objective and intersubjective faults in white paper.

So the purpose of $EIGEN are:

a) Cover non-on-chain slashing conditions. The Simplest examples are transaction ordering, databases, prediction markets, storage services, oracles, artificial intelligence, and more.

b) To enable protocols to have some form of slashing without designing on-chain slashing. That means it may appear in the new launches before ETH restaking is enabled.

https://twitter.com/sreeramkannan/status/1788093177288601851

Token fork… how will it work?

EIGEN is represented in two forms - bEIGEN and mere EIGEN, which are two separate ERC-20 tokens, that can be interchanged.

The idea behind having two representations is to avoid complexities connected to forking: imagine if it was a single token, and after every forking, DeFi and CEXes must register a new fork, supply liquidity, etc. It’s inconvenient.

Now, let’s imagine that some AVS adopted EIGEN to secure intersubjective slashing conditions. This AVS defines the mechanism for how the intersubjective slashing will work, i.e., conditions, dispute periods, voting design, etc.

Let some operators commit intersubjective fault.

Then forking (slashing) procedure will look like:

Who will get $EIGEN?

You can read all details about token allocation and check your eligibility on the official site https://eigenfoundation.org/ Here is a summary

The total supply of EIGEN at launch is 1,673,646,668.28466 tokens.

category type allocation when can trade when can stake
Community Stakedrop season 1 5% after 30 Sep as soon as I get it
Stakedrop future seasons 10% after 30 Sep as soon as I get it
Future community initiatives 15% after 30 Sep as soon as I get it
R&D and ecosystem development 15% after 30 Sep as soon as I get it
Investors Investors 29.5% 3 year lock period with linear unlock from 2nd year next few months
Early Contributors Early Contributors 25.5% 3 year lock period with linear unlock from 2nd year as soon as I get it

Notable that In the initial phase, the EIGEN token will be non-transferable and non-forkable. That means you can’t trade it and get slashing, but you can try participating in the next seasons of Stakedrop. According to the EigenLayer plans, we can expect enabling transferability by the end of Q3 after the following milestones:

Why stake $EIGEN?

When EIGEN launches, users can stake it in EigenLayer to secure EigenDA (which will use both ETH and EIGEN quorums).

It's interesting that investors and early contributors have a total three-year lock period, with a full lock in year one. What’s more, they won’t be able to stake $EIGEN before the token becomes transferable. So, in the next few months, only the community will be able to stake $EIGEN.

Meanwhile, EigenLayer announced Future Inflation and Emissions. While an initial emissions schedule is not yet determined or implemented, in the early years, the token supply is expected to be inflationary and allocated via protocol mechanisms that benefit solely the EigenLayer community. In announcement, EigenLayer shared SAMPLE emissions schedule assuming +5% annual inflation

So we having only 5% supply avaliable to stake first months and significant plans for inflation, we can assume pretty high possible APR for early restakers (not financial advise).

How to stake $EIGEN?

We are proud to announce that we are partnering with Renzo to provide users with better UX and increase farming opportunities. Renzo makes staking your $EIGEN ez while P2P.org ensures validator infrastructure uptime and manages associated risks of securing EigenDA

  1. Check eligibility & claim $EIGEN https://claims.eigenfoundation.org/ starting Friday, May 10th.
  2. Stake $EIGEN with Renzo https://www.renzoprotocol.com/
  3. Receive 100 ezPoints for every 100 $EIGEN staked with Renzo

The flow above is for users who are delegators of any EigenLayer operator. But if you have already a delegator of P2P.org [all AVS] operator, you need just restake $EIGEN, and it will automatically delegate to P2P.org

https://app.eigenlayer.xyz/restake/EIGEN

Learn more

https://blog.eigenfoundation.org/announcement/

https://github.com/Layr-Labs/whitepaper/blob/master/EIGEN_Token_Whitepaper.pdf

https://docs.eigenfoundation.org/

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