EigenLayer is gearing up to distribute about 5% of its total EIGEN token supply in what they’re calling the "season 2 stakedrop." This means a total of 86 million EIGEN tokens will go to users who have interacted with the platform.
Out of these, 70 million tokens will be allocated to stakers and node operators. Ecosystem partners will receive 10 million tokens, while the EigenLayer community will get 6 million. The distribution is set to kick off on September 17.
When EigenLayer launches, the total supply of EIGEN will hit 1.67 billion tokens. They first announced their token back in April, after pulling in around $15.7 billion in deposits. However, the total value locked (TVL) on EigenLayer has since dipped to $11.3 billion, according to DefiLlama.
EigenLayer operates on the Ethereum network. It allows users to stake ether (ETH), which can then be used to secure other networks or protocols, all in exchange for extra yield.
Recently, several restaking protocols have seen their TVL drop. For instance, Renzo's TVL has fallen by 22% to $1 billion. Meanwhile, Karak’s has decreased by 14.6% to $688 million. This decline is partly due to falling asset prices, with ether currently trading at $2,388, down from its July high of $3,536. There have also been outflows following the end of various airdrop campaigns.
Airdrop farming was a popular strategy among crypto investors earlier this year. It involved staking assets on a protocol to increase the chances of receiving a share of an airdrop when a new token was released.