todayonchain.com

Foundation behind restaking protocol EigenLayer plans bigger rewards for active users

CoinDesk
EigenLayer's foundation proposes a governance change to introduce new EIGEN token incentives tied to productive network activity and fee generation.

Summary

The foundation behind the Ethereum restaking protocol EigenLayer has proposed a significant governance change to revamp incentives for its EIGEN token, moving away from the existing Programmatic Incentives framework which relied on issuing new tokens.

The core of the new plan is establishing a fee model that channels revenue generated from Actively Validated Services (AVS) rewards and future EigenCloud services (like EigenAI, EigenCompute, and EigenDA) back to EIGEN holders. Specifically, 20% of AVS reward-related fees could fund token buybacks to reduce circulating supply, while cloud service fees would similarly support buybacks after covering operational costs.

To manage this, a new "Incentives Committee" composed of Eigen Foundation and Eigen Labs representatives would be created to direct token emissions, focusing rewards on participants who actively secure AVSs and contribute to the EigenCloud ecosystem, linking rewards more closely to productive use and risk rather than passive staking.

(Source:CoinDesk)