EigenLayer Completes Rewards v2 Protocol Upgrade On Mainnet, Unlocking Greater Flexibility For Ecosystem Rewards
In Brief
EigenLayer completes the Rewards v2 protocol upgrade on the mainnet, marking the first ELIP and the first mainnet upgrade proposed and implemented by the Protocol Council.
Ethereum restaking protocol EigenLayer has announced the completion of its Rewards v2 protocol upgrade on the mainnet, marking both the first EigenLayer Improvement Proposal (ELIP) and the first mainnet upgrade proposed and implemented by the Protocol Council.
The EigenLayer Rewards protocol allows Actively Validated Services (AVSs) to distribute rewards to stakers and operators. Operators can earn rewards by participating in AVSs that submit RewardsSubmissions to the RewardsCoordinator, a core protocol contract. Each RewardsSubmission can specify a reward distribution time range, assign weights to each strategy for the reward, and choose an ERC-20 token for the reward distribution.
Rewards v2 is an optional, lightweight upgrade to the rewards structures and contracts, designed to address key use-cases based on feedback from AVSs and operators after the initial Rewards release. With increased flexibility for AVSs, operators, and stakers, Rewards v2 aims to be a major value driver within the Eigen Economy.
The upgrade enhances flexibility, efficiency, and customization of rewards within the EigenLayer ecosystem. Notable improvements include: AVSs can now reward operators based on performance or custom logic, operators can set their own fee rates per AVS, providing economic flexibility and attracting a diverse range of participants, and stakers and operators can claim multiple rewards in one transaction, reducing gas costs.
Rewards v2 Enables AVSs To Dynamically Incentivize Operators
These enhancements allow AVSs to more dynamically incentivize operators, offering tailored reward mechanisms that better suit their needs. Importantly, there are no breaking changes for existing AVS and operator code or contracts. The new features in Rewards v2 are additive to the previous functionality. Users running the Eigen Sidecar to view, audit, or verify rewards data are encouraged to update to v2.0.0.
EigenLayer operates as a protocol on Ethereum, designed to enhance the crypto-economic security of Ethereum-based applications through AVSs. These AVSs include systems that require specialized validation processes, such as sidechains, data availability layers, and new virtual machines.
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Alisa, a dedicated journalist at the MPost, specializes in crypto, AI, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in crypto, AI, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
