Holesky launch: AVS’s begin testing restaker and operator rewards

EigenLayer has recently released the first version of its rewards system on the Holesky testnet, which shows that they are making steady progress. This first phase allows AVSs to engage with the rewards system, assess the structure of incentives for both restakers and node operators, and allow restakers to test the claiming process of testnet tokens.

In the following weeks, the company will officially debut the full rewards program on its testnet. This update will allow restakers to gather protocol awards and determine their probable AVS payment. After passing these testing, the rewards experience will be released on its mainnet. Testnet rewards have numerous factors to consider, although most reward tokens may have no fixed value since the testnet is still experimental.

The latest release of the Rewards MVP has caused a range of benefits for the EigenLayer community. For those who are willing to participate in AVSs, this presents an opportunity to test out the rewards system, explore its features, and introduce various incentives within the context of the Holesky test network. Individual node operators can look at methods for compensation for participation in the AVS and the provision of valuable services essential to the EigenLayer ecosystem expansion. 

Restakers or delegators to these operators can also practice delegating stakes to these operators and receive their proportional share of rewards from the generated AVSs. Particular integration has optimized the reward mechanism and established a functional mainnet, thereby paving the way for the collective prosperity of the EigenLayer ecosystem.

The Rewards MVP offers numerous benefits and features, including the direct distribution of ERC-20 tokens to operators and stakers for each AVS. In this feature, AVS can select the preferred reward duration to be between 7 and 90 days, with the payment made in 7-day intervals. The rewards API is also flexible, as AVSs can set up recurring token rewards with only one on-chain transaction. 

Also, the in-app claiming experience and API introduced recently help operators and restakers claim their earnings readily. Security-driven and scalable infrastructure design ensures weekly settlements with batch posts on L1. 

Restakers can also choose whether to cash in their rewards on a weekly basis or let them build up over the week, while operators and restakers can nominate a particular address for the claims, thereby guaranteeing compliance, avoiding hot wallet misuse, and integrating with the protocol effortlessly.

EigenLayer’s future plans include additional testnet rewards, such as a rewards discovery experience for restakers. Once the Holesky testnet has undergone successful testing and validation, the rewards system will be implemented on the EigenLayer mainnet. The precision and efficacy of ETH assets will be enhanced by the inclusion of checkpoint proofs in EigenPods, which is scheduled for a substantial update in Q3. 

This upgrade will also result in the withdrawal claiming process being batched for up to 100 times cheaper and the restaking of both consensus and execution rewards with more flexible proving periods. Operators’ dependability will be ensured by implementing enhanced security measures, including objective and intersubjective slashing. 

Additionally, in the event of a failure, AVSs will have the option to purchase “unique security” to safeguard themselves and their stakeholders. This will allow the AVSs to reduce a portion of their restaked capital. When coupled with pooled security, this supplementary layer of safety allows AVS to benefit from pooled security while only partially exposing node operators, retakers, and other AVS to the repercussions of their failure.

EigenLayer encourages AVSs to leverage the reward API to incentivize the operator and retaker network, operators to join AVSs to establish node lists and claim rewards on Holesky, and restakers to delegate to operators running AVSs to test for retaker incentives. To assist improve the EigenLayer ecosystem and boost its success rate, developers are encouraged to test using the APIs and share feedback.

David Cox

David is a finance graduate and crypto enthusiast. He projects his expertise in subjects like crypto and Blockchain while writing for CryptoNewsZ. Being from Finance background, he efficiently writes Price Analysis. Apart from writing, he actively nurtures hobbies like sports and movies.

Related Articles

Back to top button
Bitcoin (BTC) $ 64,292.23
Ethereum (ETH) $ 3,492.32
Tether (USDT) $ 0.999718
BNB (BNB) $ 587.00
Solana (SOL) $ 134.48
XRP (XRP) $ 0.484979
Dogecoin (DOGE) $ 0.123951
Cardano (ADA) $ 0.37603