EigenLayer Chief Dismisses Plans for Token Launch

EigenLayer’s co-founder, Sriram Kannan, told Bloomberg that the team currently has no specific plans to launch a native coin.

At present, EigenLayer employs a points system for those interacting with the protocol. These earned points are likely to be converted into a future native coin.

“There are many ways to monetize. It could be a more traditional business model or a token,” added the project’s general partner, Ali Yahya.

EigenLayer representatives shared details of securing $100 million in funding from sole backer Andreessen Horowitz.

Accelerating Ethereum Together: @eigenlayer ♾ @a16zcrypto

We are excited to announce that Eigen Labs, the core development team contributing to EigenLayer and @eigen_da, has raised $100 million from a16z crypto.https://t.co/M2JQ8HZZ0h

— EigenLayer (@eigenlayer) February 22, 2024

According to Kannan, restaking allows new projects built on Ethereum to leverage the blockchain’s security system for their own networks.

“When you stake on Ethereum, you promise to manage network nodes correctly. With restaking, you take the same ETH and make additional promises to validate other networks correctly as well,” he explained.

The co-founder believes EigenLayer will enable the creation of “all kinds of new applications,” with users investing to earn rewards from new services.

Essentially, the project offers a platform for those interested in restaking rather than the traditional staking process, which attracts regulatory attention, Kannan noted.

“If [SEC Chairman] Gary Gensler understood what we are building, he would really like it,” concluded the head of EigenLayer.

According to DeFi Llama, the protocol has reached fourth place in terms of locked funds, with a figure of $7.9 billion.

However, the liquid restaking service is not yet available on the site.

Earlier, EigenLayer developers announced plans to implement a “shared security” system for decentralized applications, supported by a common network pool.

Back in March 2023, the protocol raised $50 million in a Series A funding round, valuing it at $750 million.

A month later, the team launched a test network based on the Ethereum testnet Goerli.