Ethereum’s Fusaka Upgrade: What It Means for Institutional Stakers

<h2 id="at-a-glance"><strong>At a Glance: </strong></h2><ul><li><strong>Programmatic Incentives v2 quadruples restaker rewards</strong> from 1% to 4% of issuance, creating sustainable economics that favor consistent, long-term participation over short-term speculation.</li><li><strong>Duration and reliability now determine rewards</strong>, with operator uptime, infrastructure quality, and clean track records directly impacting how allocations flow through the system.</li><li><strong>EigenAI and EigenCompute launch as functional AVSs</strong>, transforming restaking from concept to operational infrastructure that generates both protocol incentives and service fees.</li><li><strong>Enterprise operators gain clear advantage</strong> as v2's focus on stability and performance aligns directly with institutional-grade infrastructure capabilities.</li></ul><h2 id="a-deeper-look-at-how-eigenlayer-is-recalibrating-restaking-economics"><strong>A Deeper Look at How Eigenlayer Is Recalibrating Restaking Economics</strong></h2><p>In our previous EigenLayer article, we broke down the 4x jump in network rewards and the arrival of EigenAI and EigenCompute — the moment EigenLayer’s economics started shifting in a meaningful way. We’re writing this follow-up because the opportunity has only grown since then. With Programmatic Incentives v2 now shaping how rewards flow through the system, the economics around restaking are entering a phase where early, consistent participants can position themselves ahead of where the ecosystem is clearly moving.</p><h2 id="a-shift-in-how-rewards-work"><strong>A Shift In How Rewards Work</strong></h2><p>Before v2, EigenLayer allocated around one percent of issuance to restakers. That design helped bootstrap adoption but didn’t fully reflect the role restakers and operators play as more services begin relying on EigenLayer’s security.With v2, that allocation increases to four percent. It’s a structural change — not a temporary boost — and it redistributes rewards in a way that creates a more predictable and durable baseline for participants who are actually supporting network operations.</p><p>The protocol also doubled annual inflation from four to eight percent. Most of this increase funds the higher allocation to restakers; another portion is now set aside specifically for ecosystem development. That budget enables the protocol to fund integrations, support new AVSs, and deepen the infrastructure layer around restaking. The outcome is a model that’s built to last longer than short-term incentive windows.</p><h2 id="alignment-over-accumulation"><strong>Alignment Over Accumulation</strong></h2><p>The idea behind v2 is simple: EigenLayer wants to reward people who show up consistently.The old design could attract restakers who entered and exited depending on external market conditions. The new one emphasizes duration, operator reliability, and participation in securing AVSs for more than a single epoch at a time.</p><p>For operators, this change is even more important. Their role becomes clearer. The protocol now explicitly ties operator performance to how restaker allocations flow, making uptime, geographical resilience, and clean operational histories more valuable over time. What EigenLayer is doing here mirrors the logic of Ethereum’s own validator set — predictable behavior is worth more than raw capital.</p><h2 id="the-connection-with-eigenai-and-eigencompute"><strong>The Connection With EigenAI and EigenCompute</strong></h2><p>The timing of Programmatic Incentives v2 is not accidental. EigenCloud launched EigenAI and EigenCompute on mainnet alpha at the same time, and together these releases form a more cohesive picture of where EigenLayer is heading.</p><p>EigenAI offers a verifiable inference layer — a way for developers to request LLM outputs with guarantees that inputs, outputs, and model versions haven’t been altered.EigenCompute does something similar for off-chain execution: a path to confirm that computation occurred correctly, even if it didn’t happen on-chain. The current version uses TEEs to provide these guarantees, and future releases plan to introduce proof-based verification.</p><p>These two AVSs represent the first real applications where restaked capital and operator infrastructure secure something concrete. They turn the abstract idea of “restaking” into something closer to an economic engine. Protocol incentives form the baseline; fees generated by AVS usage add an additional layer above it.The more these services are used, the more meaningful that second layer becomes.</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2025/11/data-src-image-b971c9c0-c6cf-40a7-a76f-526c168bf5d1.png" class="kg-image" alt="" loading="lazy" width="1250" height="868" srcset="https://p2p.org/economy/content/images/size/w600/2025/11/data-src-image-b971c9c0-c6cf-40a7-a76f-526c168bf5d1.png 600w, https://p2p.org/economy/content/images/size/w1000/2025/11/data-src-image-b971c9c0-c6cf-40a7-a76f-526c168bf5d1.png 1000w, https://p2p.org/economy/content/images/2025/11/data-src-image-b971c9c0-c6cf-40a7-a76f-526c168bf5d1.png 1250w" sizes="(min-width: 720px) 720px"></figure><p><em>Source:</em><a href="https://docs.eigencloud.xyz/eigenai/concepts/eigenai-overview?ref=p2p.org"><em><u> EigenCloud&nbsp;</u></em></a></p><h2 id="a-new-phase-of-the-restaking-economy"><strong>A New Phase of the Restaking Economy</strong></h2><p>EigenLayer is moving into a phase where the incentives match the ambition of the protocol.Programmatic Incentives v2 gives restakers a clearer picture of how rewards are structured; it gives operators a stronger reason to invest in stability and performance; and it gives AVSs confidence that their security is backed by participants who aren’t constantly cycling in and out.</p><p>The added inflation — directed not just to restakers but to growth initiatives — supports the kind of ecosystem that can sustain AVSs like EigenAI and EigenCompute. These applications need reliable operators, predictable restaker participation, and continued investment in the infrastructure around them. v2 creates that foundation.</p><h2 id="where-p2porg-fits-in"><strong>Where P2P.org Fits In</strong></h2><p>For operators like P2P.org, the shift is straightforward: incentive structures now emphasize the things high-quality operators already do — maintain uptime, distribute infrastructure geographically, and avoid slashing incidents.The alignment between operator behavior and protocol incentives is stronger under v2 than it has been at any point since EigenLayer’s inception.</p><p>P2P.org’s update to a 5% commission rate through 2025 reflects this alignment. It matches the protocol’s new structure and helps restakers participate under the updated parameters with minimal friction.The operator infrastructure — SOC 2 audited systems, multi-region Kubernetes clusters, redundant RPC and monitoring pipelines — is built for this kind of environment.</p><h2 id="looking-ahead"><strong>Looking Ahead</strong></h2><p>Programmatic Incentives v2 is the beginning of EigenLayer’s next chapter. With restaker allocations redesigned, AVSs expanding, and verifiable AI and compute now entering the picture, restaking is moving from a conceptual model into an operational one.</p><p>The economics are more transparent.The incentives are clearer.And the participants — restakers, operators, and AVSs — now have a structure built around long-term alignment instead of short-term fluctuations.</p><p>EigenLayer is building an economic base layer around verifiable compute.v2 is the mechanism that makes that sustainable.</p><div class="kg-card kg-button-card kg-align-center"><a href="https://link.p2p.org/6ff6e5?ref=p2p.org" class="kg-btn kg-btn-accent">Restake $EIGEN with P2P.org</a></div>