EigenLayer users complain about the limited air drop, while others say ‘it’s generous’

Users who felt left out of the recently announced Eigenlayer airdrop spoke out at Monday's announcement of the relaunch protocol — its non-transferable token structure, strong geo-restrictions and seemingly short snapshot times.

Eigenlayer — the second-largest protocol with $15.67 billion in total value locked (TVL) — announced its long-awaited “stakedrop” specials in a blog post on April 29.

Although the protocol didn't officially confirm the airdrop until Monday, speculation is looking good that Eigenlayer — adding more than $15.7 billion to the protocol — will receive its previously held stake Ether (ETH) in some weather. Forward point.

The EIGEN Foundation announced in an announcement that it will allocate 15% of EIGEN's total supply of 1.67 billion tokens to the public, but only 5% of the initial token will be allocated to early adopters who participated in Season One. The remaining allocation will be distributed to the beneficiaries in the following ‘Periods'.

Some users objected to this relatively small allocation and said that the documentation for airdrop allocations was “confusing”.

Non-transferable tokens and linear distribution

However, Stakedrop's critics have directed much of their anger at the fact that while users will be able to claim their EIGEN tokens starting March 10, they won't be able to transfer or sell them until an unspecified date.

The Eigen Foundation wrote that this inspection was carried out to ensure that EIGEN, including fees and deductibles, were “well-established” before being transferred between users.

“We believe this approach will best support the long-term growth and maturity of the EigenLayer ecosystem.”

In addition, some users have aimed heat at EIGEN's linear distribution model, which means that the number of points users earn is directly proportional to the number of EIGEN tokens requested – which they say unfairly favors large backers.

“Actually, the linear approach is stupid. Basically you get 1000-2000 Egan stakeholders for 100k cost of peanuts,” shared a user on X.

However, Eigenlayer is not the first protocol to use a linear model for token distribution, as several major protocols, including Solana-based protocols Kamino Finance and Parcl, opted for the same distribution model in their respective climates last month, although this did not seem to attract the same level of criticism at the time.

Another big concern for critics is the severe geographic restrictions imposed on users who want to claim their airdrops.

According to EigenLayer's legal documents, users from 30 countries, including the United States, Canada, China and Russia, cannot claim EIGEN tokens.

The foundation announced that it has taken additional steps to ensure that users who try to bypass these restrictions with a VPN cannot do so.

“It is not right to accept and reward shares from those countries. One user wrote in response to the protocol's geoblocking efforts.

Related: EigenLayer on the brink of a productivity crisis

Another anonymous crypto user on X described all these factors as “disturbing” that took away from EIGEN's airdrop hopes.

Critics are ‘trying to find reasons' to be upset.

Despite the anger surrounding the stakedrop, Henrik Andersson, chief investment officer of Australian crypto investment firm Apollo Capital, said many of EigenLayer's critics were simply “trying to find reasons to be upset.”

Speaking to Cointelegraph, Anderson described Eigenlayer's total allocation of 15% to users as “generous,” and counted the many “positives” involved in the protocol's stakedrop process.

The Foundation clarified its distribution model, and described the confusion surrounding the allocation of certain users of the DeFi protocol as misplaced.

“Stakedrop is linear, in my opinion it's the best way to do it and it effectively avoids the issues associated with Sybil attacks,” he said.

“The cherry on top is that you don't need to link your wallet or sign anything to check your stakedrop – nice EigenLayer!” said Anderson.

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