EigenLayer Upgrades EIGEN And bEIGEN Contracts To Introduce Programmatic Incentives
In Brief
EigenLayer queued the transactions to modify the EIGEN and bEIGEN contracts in the TimelockController ahead of programmatic incentives lunch.
Ethereum restaking protocol, EigenLayer announced that it is upgrading its EIGEN and bEIGEN contracts to introduce programmatic incentives.
As the initial phase of the upgrade, transactions to modify the EIGEN and bEIGEN contracts were queued in the TimelockController. Such action is set to facilitate the forthcoming implementation of programmatic incentives.
Earlier this summer, EigenLayer unveiled a rewards feature that compensates stakers and operators for participating in securing EigenLayer Actively Validated Services (AVSs). This allows token-based incentives to be allotted straight away from AVSs to stakers and operators via the protocol.
This system allows AVSs to distribute rewards to their participants. However, due to the recent implementation, the initial volume of incentives sent by AVSs is relatively low.
To make the AVS rewards mechanism work better, EigenLayer’s new program will offer “reward-boosts,” where EIGEN tokens are automatically allocated to stakers and operators correlating with the rewards given out by AVSs. During the initial year, a minimum of 4% of the total EIGEN supply will be sent out as rewards.
This design is aimed at encouraging AVSs to start distributing rewards to stakers and operators sooner, enabling them to benefit from and secure a greater portion of the initial EIGEN programmatic incentives.
EigenLayer Launches Permissionless Token Support On Mainnet
EigenLayer functions as a protocol on Ethereum, which is created to advance Ethereum’s crypto-economic security for applications via AVSs. These AVSs encompass systems that need unique validation processes, such as sidechains, data availability layers, and the new virtual machines.
Recently, it unveiled a token support feature on the mainnet, enabling any ERC-20 token—such as native AVS tokens, stablecoins, and BTC-denominated tokens—to be utilized as restakable assets. This expansion aims to broaden the range of assets that can help secure decentralized networks.
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About The Author
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.
