EigenLayer launches the second season staking airdrop event, distributing 86 million EIGEN tokens.

The EigenLayer protocol announced the launch of the second season stakedrop activity, distributing 86 million EIGEN tokens to its holders. This new round of token distribution is mainly aimed at active stakers, node operators, ecosystem partners, and community members between March 15 and August 15, 2024. The distribution is set to begin on or before September 17, 2024, to continue the excitement from the early token issuance and the first stakedrop of the protocol.

Details and Qualifications for EigenLayer Season 2 Distribution

The second season staking airdrop will distribute approximately 5% of the total supply of EIGEN tokens, totaling 86 million tokens, to various holders within the EigenLayer ecosystem. Among them, 70 million tokens will be allocated to active stakers and node operators during the second season, distributed based on each participant's ETH staking ratio to incentivize members who directly contribute to the platform's security and operation.

Additionally, up to 10 million tokens are reserved for active verification service providers (AVS), Rollup, liquidity staking protocol, and other contributors to the EigenLayer network. Another 6 million tokens will be distributed to community members, including open-source contributors, early supporters, and other supporters. Community members must link their wallet addresses with social media accounts through the Eigen Foundation's verification website by September 11 to verify their social identity and claim these tokens.

Review of EigenLayer Staking Use Cases

EigenLayer allows users to deposit and stake Ether from various liquidity staking tokens to protect third-party networks or AVS. This unique approach aims to provide robust security services for other blockchain networks while rewarding participants through staking airdrop activities. The protocol continues to expand its influence by attracting different segments of the staking community through targeted token distributions.

Impact of TVL Decline on EigenLayer and the Staking Sector

The announcement of the second season staking airdrop comes amid a general decline in Total Value Locked (TVL) in the staking sector.EigenLayer's TVL dropped significantly from a historical high of $20.1 billion in June to $11.1 billion. This decline is part of an overall trend, with other platforms such as Renzo, Puffer, Kelp, and Swell also experiencing notable decreases in TVL.

Analysts attribute this decline to the end of the initial airdrop activities and the launch of native tokens for major protocols (including EigenLayer's EIGEN and Renzo's REZ tokens). These launches typically trigger a short-term surge in participation, followed by a natural outflow of funds as incentives diminish.

Rising Competitor Symbiotic Surpasses $1.5 Billion

In contrast to the declining TVL of other staking protocols, Symbiotic has seen significant growth since its launch in June, surpassing $1.5 billion in TVL. Unlike its peers, Symbiotic has not introduced native tokens, which may be attracting users to the platform while anticipating future returns.

The fully diluted supply of EigenLayer is 1.67 billion tokens, currently non-tradable, but based on market estimates on platforms like Hyperliquid, it is valued at approximately $2.5 per token. This implies a fully diluted market valuation of around $4.2 billion. This represents a significant correction compared to the initial estimated trading price of $7-10 per token.

As EigenLayer prepares for the second season staking airdrop, the protocol continues to refine its role in the evolving decentralized finance sector by rewarding active participants and safeguarding various blockchain services while addressing challenges posed by TVL declines and market fluctuations.

CoinDesk Report: EigenLayer Allows Employees to Receive Ecosystem Airdrops, Profits Millions of Dollars