EigenLayer Unveils Programmatic Incentives v1 to Reward Stakers and Operators
The
Eigen
Foundation
has
announced
the
release
of
Programmatic
Incentives
v1,
a
new
feature
within
the
EigenLayer
protocol
designed
to
distribute
EIGEN
token
rewards
to
stakers
and
operators.
This
initiative
aims
to
incentivize
active
participation
in
supporting
AVSs
(Advanced
Validation
Systems),
according
to
EigenLayer
Blog.
Programmatic
Incentives
v1
Overview
The
Programmatic
Incentives
v1
will
provide
weekly
rewards
of
newly-minted
EIGEN
tokens
to
qualifying
stakers
and
their
delegated
operators.
These
incentives
will
be
retroactive
from
August
15,
2024,
and
will
be
claimable
weekly
starting
in
October
2024.
In
its
first
year,
the
program
is
set
to
distribute
approximately
66,945,866
EIGEN,
which
represents
4%
of
the
token’s
initial
supply
of
around
1,673,646,668
tokens.
Distribution
Mechanics
Initially,
the
distribution
will
be
configured
as
follows:
-
Linearly
Distributed:
Around
1,287,420
EIGEN
will
be
distributed
weekly
to
stakers
and
operators,
starting
August
15,
2024. -
Proportional
to
Stake:
EIGEN
will
be
distributed
based
on
the
amount
of
delegated
stake. -
Fixed
Operator
Commission:
10%
of
the
weekly
distributions
(~128,742
EIGEN)
will
go
to
operators
with
delegations,
and
the
remaining
90%
(~1,158,678
EIGEN)
will
be
allocated
to
stakers.
These
percentages
are
subject
to
change
in
future
updates.
Eligibility
and
Claiming
To
qualify
for
Programmatic
Incentives,
operators
must
be
registered
to
at
least
one
AVS,
and
stakers
must
delegate
to
a
registered
operator.
The
first
rewards
will
be
visible
in
the
EigenLayer
dApp
as ‘Lifetime
Earned
Rewards’
starting
October
1,
2024,
and
can
be
claimed
from
October
8,
2024,
onward.
Accrued
rewards
will
not
expire
and
can
be
claimed
at
any
time.
Direct
stakers
and
operators
can
claim
their
rewards
via
the
EigenLayer
dApp,
CLI,
or
directly
through
smart
contracts.
LRT
Stakers
will
accumulate
rewards
through
the
LRT
protocol,
and
users
should
refer
to
their
respective
LRT
protocols
for
details
on
managing
these
rewards.
Future
Updates
The
configuration
of
the
Programmatic
Incentives
will
adapt
over
time
to
better
meet
the
ecosystem’s
needs.
Future
updates
under
consideration
include:
-
Rewards
Boost:
Distributing
EIGEN
proportional
to
rewards
distributed
by
each
AVS. -
Rewards
Floor:
Allocating
a
small
portion
of
rewards
to
AVSs
not
yet
distributing
rewards. -
Variable
Operator
Commissions:
Introducing
flexible
commission
rates
to
foster
an
operator
marketplace.
Significance
of
Programmatic
Incentives
v1
This
release
signifies
a
major
milestone
for
EigenLayer
and
the
restaking
ecosystem.
By
transitioning
from
retroactive
incentives
to
continuous
liquid
rewards,
EigenLayer
aims
to
create
a
market
for
price
discovery
of
shared
security.
The
predictable
rewards
will
provide
a
credible
commitment
to
stakers
and
operators,
subsidize
the
restaking
marketplace,
and
strengthen
incentive
alignment
by
encouraging
positive
actor
participation.
A
follow-up
blog
post
with
more
technical
details,
claiming
guidelines,
and
supporting
documentation
will
be
published
upon
the
mainnet
release
of
Programmatic
Incentives
v1.
For
more
information,
visit
the
EigenLayer
Blog.
Image
source:
Shutterstock
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