The EIGEN Foundation donates 1% of the EIGEN supply to the ETH Protocol Guild
The Eigen Foundation has announced that it will allocate 1% of the EIGEN token supply to the Protocol Guild – the group of core developers responsible for maintaining the Ethereum layer-1 blockchain.
According to the Eigen Foundation, the funds will be used to support the ongoing work of the Protocol Association, which currently has 180 members from 29 groups.
EigenLayer is a reshoring protocol on Ethereum, which allows Staked Ether (stETH) and other assets to be redistributed and shared multiple times. This provides investors with additional profit opportunities while allowing other protocols to leverage Ethereum's security.
This role has positioned EigenLayer as a critical component of the Ethereum network infrastructure, drawing both praise and concern from the Ethereum community.
EIGEN token one month price chart. Source: CoinMarketCap
Related: EigenLayer to improve redeemable rewards
Reinvention draws narrative attention
Re-storage is seen as a way to bring fresh capital injections into crypto and has the potential to create a new asset class as re-storage becomes a security mechanism for blockchain protocols and decentralized applications.
Allowing protocols to use recaptured properties for network security requires that the protocol's overhead be initialized to protect the network. This significantly lowers the barrier to entry for developers and decentralized applications.
According to Defillama, restructuring protocols currently have a total value locked (TVL) of about $26.9 billion. EigenLayer accounts for the majority of this TVL at around $18.2 billion.
Total cost is locked in on fluid resuscitation protocols. Source: DeFillama
The popularity of EigenLayer prompted the EIGEN token to crack the top 100 cryptocurrencies by market capitalization in October. However, the token has since fallen out of the top 100 and currently stands at the market value of 108.
In November, EigenLayer expanded its restocking options to include packaged Bitcoin products. The update allowed users to deposit UniBTC to the ARPA network, a protocol built on top of EigenLayer to access the product.
December data from Defillama shows that the total value locked in the decentralized financial ecosystem is approaching 2021 highs. This increase in total value is partially due to the expansion of liquid repositories and packaged Bitcoin devices.
Magazine: Ethereum Resurgence: Blockchain Innovation or Dangerous House of Cards?
