Introduction
The EigenLayer Foundation has announced an upcoming rewards program that will incentivize stakers and operators for securing Actively Validated Services (AVSs). According to details shared in a recent blog post, the Ethereum restaking protocol is introducing a new incentive program that will allocate 4% of the EigenLayer (EIGEN) total supply.
EigenLayer Foundation Announces Rewards-Boost Program
EigenLayer connects different restaking protocols, allowing stakers and operators to help secure AVSs by restaking their ETH. In return, they receive staking rewards. This initiative marks the first time stakers and node operators will receive token-based rewards directly from AVSs via them protocol.
The foundation plans to distribute 4% of the EIGEN supply through “rewards boost” distributions as part of the new EIGEN programmatic incentives. The rewards will be proportional to the distribution of AVSs, meaning the more AVSs a network participant supports, the more tokens they will receive from the EigenLayer Foundation.
“The goal of this design is to incentivize AVSs to begin distributing rewards to stakers and operators early, to benefit from and obtain a larger share of the early EIGEN programmatic incentives,” the blog post read.
Program to Also Benefit New AVSs
EigenLayer aims to support even those AVSs that may not have the capacity to distribute rewards on the first day. Stakers and operators supporting such AVSs will still receive small distributions of EIGEN. The ‘rewards floor’ will be available outside the main rewards boost, ensuring every genuine AVS can allocate some rewards to its stakers and operators. Them believes this will encourage new actively validated services to join its ecosystem.
Launch Timeline
The AVS rewards program is set to launch in the coming weeks, with the programmatic incentives scheduled for the coming months. EigenLayer, which deployed its contracts to the mainnet in June last year, has seen over 4.8 million ETH and more than 108 million EIGEN restaked. There are currently 16 launched AVSs and over 300 operators involved.
Conclusion
The introduction of these new rewards and incentive programs by EigenLayer Foundation is a significant step towards enhancing the security and participation in Actively Validated Services. By offering substantial token-based incentives, EigenLayer aims to boost the engagement and support of its ecosystem, fostering a robust and dynamic network.
