The post EigenLayer In Spotlight Again On Controversial Advisor Allocation appeared on BitcoinEthereumNews.com.

Amidst the multiple backslashes that the EigenLayer protocol has received over its EIGEN token distribution, Ethereum researcher Justin Drake has taken to X to offer some disclosure. Perks of an EigenLayer Advisor  Drake confirmed that he recently became an advisor to the Eigen Foundation. This is in addition to the two other Ethereum Foundation staff that have a formal relationship with EigenLayer entities. On the matter of EIGEN token distribution, Drake agreed that the community deserve transparency. In his explanation, the Ethereum researcher noted that as an advisor, he stands to receive a significant EIGEN token incentive. There is a possibility that this token could be worth more than the combined value of the other digital assets in his portfolio. This includes Ethereum which makes up a larger share of his crypto holdings. He believes that as an advisor, the EIGEN token could run into millions of dollars vesting over three years. Drake’s plan is to reinject the proceeds from his  advisorship with EigenLayer into projects in the Ethereum ecosystem that he deems worthy. His contributions could either be in the form of an investment or a donation. Drake made it clear that his commitment to the EigenLayer advisorship lies on its alignment with Ethereum’s interest. Hence, a misalignment will result to termination of the advisorship, according to the Ethereum researcher. Is The Ethereum Foundation Safe? Furthermore, Drake described how he began his journey as an advisor with EigenLayer. He claimed that the entire onboarding process took more than one year and it happened on the condition that his mandate be limited to researching restaking risks. He also asked not to be put on marketing materials. Drake said he will put in effort into giving constructive criticism while advocating for “mitigations to risks like the erosion of solo validators and…

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Filed under: News - @ May 20, 2024 10:20 am