EigenLayer, a restaking protocol built on Ethereum, has announced the distribution of 86 million EIGEN tokens to users as part of its “season 2 stakedrop.” This distribution will start on September 17 and targets various groups within the platform’s ecosystem. Out of the total allocation, stakers and node operators will receive the largest share, amounting to 70 million tokens. Ecosystem partners are set to receive 10 million tokens, while the remaining 6 million will be distributed to the EigenLayer community. This total of 86 million tokens represents approximately 5% of the total EIGEN supply, which is expected to reach 1.67 billion tokens at the official launch.

EigenLayer initially introduced its native token in April after the protocol gained significant traction, amassing about $15.7 billion in deposits. However, since the announcement, the total value locked (TVL) in EigenLayer has declined, with recent data from DefiLlama showing a drop to $11.3 billion. EigenLayer’s core offering allows users to stake their ether (ETH), which can then be reused to secure additional networks or protocols in exchange for higher yields. This functionality is a key aspect of the protocol’s value proposition, enabling more efficient use of staked assets.

The decline in TVL is not unique to EigenLayer, as several other restaking protocols have experienced similar drops. Renzo, for example, saw its TVL decrease by 22%, leaving it with $1 billion, while Karak experienced a 14.6% reduction, now holding $688 million in TVL. This trend can be partially explained by the falling price of ether, which is now trading at $2,388 compared to its peak of $3,536 in July. Furthermore, many investors who had engaged in airdrop farming — staking assets in anticipation of token rewards — have withdrawn their funds following the conclusion of various airdrop campaigns. This has contributed to the broader outflows seen across the sector.

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