Eigen Foundation launches EIGEN Token and unveils Stakedrop

The Eigen Foundation, an organization that is self-sufficient and dedicated to promoting the development of EigenLayer, has released a token called EIGEN. This upgrade aims to enable Ethereum to protect its protocols using the so-called “restaking” method as well as a range of protocols unrelated to Ethereum.

EigenLayer serves as the initiative’s foundation, utilizing staked ETH to offer crypto-economic security across various protocols. This gives rise to the “Shared Security Commons,” a pool with extensive reserves of customizable trust parameters. Therefore, this technical advancement greatly impacts the support for open innovation within the ecosystem.

The EIGEN token includes a unique mechanism to address the famous “intersubjective faults”: the recognizable misbehaviors that an observer cannot easily measure. This perspective process, known as intersubjective forking, can address these errors; however, simple staking of ETH cannot achieve this. 

In this way, the user can fork the token, allowing them to determine the actual fork without forking Ethereum’s mainnet. This attribute works the same way, but it happens less frequently. However, it also adds a tool for ensuring the immutability and equitability of the system presided over by EigenLayer.

The intersubjectivity of the forking system ensures peace and fairness in a conflict environment. To achieve this, permission holders lock a large number of EIGEN tokens in the transaction. Assuming the community accepts the fork, the adversary will ultimately face defeat and reap the rewards. This type of climate will instead punish malpractice through monetary charges, thereby promoting self-governance, a desirable outcome.

The Eigen Foundation‘s mission is to push open development, and the path to it involves using the token EIGEN in a step-by-step process. At the very beginning, the token will remain immobile between individuals to maintain stability; thus, the ecosystem will get the necessary time to grow and develop. 

Nonetheless, subsequent iterations are slated to feature a wallet that enables complete transfer and fork functionalities. This determination is predicated on the community’s feedback and its adoption of the system’s design.

Additionally, the EIGEN staking dominantly secures EigenLayer’s Decentralized Autonomous Organization (DAO), which combines ETH and EIGEN. This taxonomy-driven mechanism increases the protocol’s multitasking capability. It applies to many applications, such as transaction ordering and artificial intelligence, enabling the creation of the full-fledged EigenLayer ecosystem.

The allocation of 5% of the initial token supply during Season 1 of the Eigen stakedrop has been meticulously organized. By March 15, 2024, each participant’s allocation will be determined by their interactions with the protocol. This stake drop will unfold in two phases: one will focus on straightforward interactions with the protocols, and the other will utilize the feedback from the community to provide more detailed solutions to users with complex interaction protocols.

In addition to marking another significant milestone for the project, the introduction of EigenLayer also signifies the emergence of new blockchain technology trends that prioritize environmental enhancement rather than favoring large players. It is expected that the implementation of EIGEN will significantly enhance the security, scalability, and functionality of decentralized networks. It will facilitate access to the forthcoming era of opportunity and confidence within the blockchain environment.

Scott Cook

Scott Cook got into crypto world since 2010. He has worked as a news writer for three years in some of the foremost publications. He recently joined our team as a crypto news writer. He regularly contributes latest happenings of crypto industry. In addition to that, he is very good at technical analysis.

Related Articles

Back to top button