How To Find Your EigenLayer Airdrop Allocation: Step-by-Step Guide

The EigenLayer airdrop has been a big deal, with many people wanting to join in and get free tokens. But things haven't been smooth sailing, especially for folks in the United States.

Here's the thing: it's been tricky to move ethereum (ETH) onto the EigenLayer platform, which is needed to get the airdrop. Users are facing difficulties making deposits right now (at the time of writing), and the platform is full! New folks can't even get in line. Additionally, the platform set geographic limits by excluding users from 30 countries, including the US, Canada, China, and Russia.

What Is The EigenLayer Airdrop?

The EigenLayer airdrop allocation, also called a stakedrop, is a distribution of tokens to users who participate in the EigenLayer platform by staking Eigen tokens. This initiative aims to reward participants for securing EigenDA and future AVSs, with approximately 15% of the token supply allocated across multiple seasons. 

By incentivizing users to engage with the EigenLayer protocol, the airdrop attracted over $10 billion in assets to the protocol. Although deposits are currently closed, participants can earn rewards by staking their ETH on the platform. The EigenLayer token launch is scheduled for May 10, 2024, with a total supply of 1.67 billion tokens, and the team has confirmed the airdrop for restakers, distributing 5% of the EIGEN supply for the current season.

Step-by-Step Guide To Finding Your EigenLayer Airdrop Allocation:

Do you have an eye on EigenLayer airdrop allocation? 

Here's a quick rundown to see if you qualify and how to claim them:

• Check Your Eligibility: Head over to the EigenLayer airdrop allocation or claim page to see if you're on the list for free tokens! 
• Claim Window: If you qualify, you can claim your tokens between May 10 and Sept. 7, 2024 (that's 120 days to grab your share).
• Confirmed Airdrop: While there were initial rumors, the good news is that the Eigen token launch is officially happening alongside the airdrop for users who staked earlier (restakers).
• Snapshot Date: The EigenLayer team took a snapshot on March 15, 2024, to determine who qualifies for the airdrop.
• Airdrop Tiers: There are two phases to the current stakedrop season (Season 1):
• Phase one (Most Folks): This covers around 90% of the airdrop pool and includes people who interacted with EigenLayer in basic ways, like staking their cryptocurrency.
• Phase two (More Complex Users): The remaining 10% goes to users who did more complicated things with their tokens based on feedback from the community.
• Testnet Users: A small number of testnet users also got some tokens, but future testnets (like Holesky) won't have airdrops.
• More Airdrops to Come: EigenLayer plans to have more airdrop seasons in the future, with a total of 15% of their initial token supply set aside for rewards.

Benefits and Risks of Being An EigenLayer Investor [Restaking]

Investing in EigenLayer through restaking offers a range of benefits and risks that potential investors should carefully consider.

Benefits

• Restakers can diversify their staked assets across multiple services and projects, aligning with their interests and risk tolerance.
• Stakers can earn more than traditional staking pools by choosing from various services with different reward structures.
• Stakers can select operators based on performance, trustworthiness, and rewards offered, allowing for a more tailored investment approach.
• EigenLayer taps into an already incentivized and active validator network on ethereum, reducing the financial burdens associated with incentivizing participation in a new network.
• Operators can secure multiple networks beyond ethereum, expanding their influence and operational scope.

Risks

• Restaking terms may incorporate slashing conditions, posing the risk of significant asset loss for validators engaging in malicious behavior.
• Restakers might prioritize protocols with higher yields, potentially impacting the Layer one network and introducing financial risks.
• Using a centralized actor to issue Liquid Staking Tokens (LSTs) introduces centralization risks within the ethereum validator network, potentially compromising security and governance.
• Restaking renders assets nonliquid during the staking period, introduces liquidity availability and stability risks, and poses potential smart contract risks.
• Restaking introduces supplementary risks to the security of ethereum, overlaying additional vulnerabilities on top of inherent staking risks.

In conclusion, while restaking in EigenLayer presents opportunities for enhanced rewards and diversified investment options, investors should be aware of the associated risks, including slashing, yield, centralization, liquidity, and security risks. Careful consideration of these factors is essential for making informed investment decisions in the EigenLayer ecosystem.