Restaking protocol EigenLayer is set to lift transfer restrictions on its native EIGEN token, with changes expected to go into effect on September 30.
This move will allow token holders to trade and transfer EIGEN tokens, including airdrop rewards distributed during the platform’s recent staking periods.
The project has announced that token holders who stake EIGEN tokens will be required to adhere to a mandatory 7-day withdrawal period before they can redeem them. This update comes after the protocol’s second “stakedrop” season, which saw 86 million EIGEN tokens distributed to active participants between March 15 and August 15, 2024. Initially, these and previously issued tokens were non-transferable.
EigenLayer, a platform that allows users to deposit and stake ETH, aims to secure third-party networks and verified services through the restaking mechanism. The platform’s total token supply of 1.67 billion is part of a broader security model known as “inter-subjective forking” that aims to strengthen crypto-economic security.
Ahead of the expected transferability, pre-market trading platforms like Hyperliquid value EIGEN token derivatives at approximately $3.4 each, a fully diluted valuation of $5.4 billion.
Despite a strong start with significant deposits during its phased rollout, EigenLayer has also experienced significant outflows recently. The platform’s total value locked (TVL) has fallen from an all-time high of $20 billion in June to $12 billion, signaling a shift in market activity ahead of the token transferability update.
*This is not investment advice.
