EigenLayer to improve recurring rewards
According to a Dec. 6 blog post, EigenLayer, Ethereum's largest recycling protocol, is revamping its rewards program to provide more flexibility to protocols and recyclers.
The changes allowed third-party protocols using EigenLayer – dubbed Actively Authenticated Services (AVSs) – to distribute rewards to validators based on performance. They also allowed verifiers, or “operators,” to set payment rates independently, Eigenlayer said.
The updates are “designed to bring greater flexibility, efficiency, and customization to Rewards in the EigenLayer ecosystem,” Redo Protocol said in a Dec. 6 post on the X forum.
EigenLayer said the updates will start rolling out on the mainnet in January.
EigenLayer AVSs. Source: EigenLayer
The largest renewal protocol
In the year EigenLayer, which launched in 2023, has acquired dozens of AVSs, with approximately $19 billion in repurchased securities, Defilama said.
Rescheduling involves taking an already staked token – escrow with a validator in exchange for a reward – and using other protocols to secure it at the same time.
Some 20 AVs are available on EigenLayer's mainnet, and dozens more are in development.
They include EigenDA — an AVS and ARPA Network managed by EigenLayer developer Eigen Labs, which specializes in trustless randomization.
On October 1st, EigenLayer launched its native EIGEN. According to EigenLayer, it is designed to protect protocols against a wide range of errors by using existing proof-of-concept tokens such as Ether (ETH).
As of December 6, EIGEN is trading at around $4.92, indicating a fully diluted market capitalization of around $8.25 billion, according to CoinMarketCap.
Source: Defillama
Reward program
On September 17th, EigenLayer launched a programmatic incentive program to attract repeaters.
The program will reward 4% of the token's total supply in EIGEN releases to repeaters.
“Starks earn programmatic rewards based on how many AVS they serve, and AVSs pay stakeholders and operators,” EigenLayer founder Sreeram Kannan told Cointelegraph in October.
“The higher the AVS fee, the more value is assigned,” Kannan said.
Since September, the ARPA Network has distributed 14,000 native ARPA tokens to remasters every week as part of the EigenLayer rewards program.
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