EigenLayer to Upgrade Restaking Rewards Program

Anna Martynova

EigenLayer, the largest Ethereum restaking protocol, will upgrade its rewards program to provide more flexibility to protocols and restakers, according to a blog post on December 6. The changes will allow third-party protocols that use EigenLayer — so-called actively validated services (AVSs) — to distribute rewards to validators based on performance.

They will also allow validators, or “operators,” to set fee rates independently, EigenLayer said. The upgrades will launch on the mainnet in January. Launched in 2023, EigenLayer has secured dozens of AVSs with nearly $19 billion of restaked collateral, according to DefiLlama. About 20 AVSs are already running on the EigenLayer mainnet, with dozens more in development. These include EigenDA, an AVS run by EigenLayer developer Eigen Labs, and the ARPA Network, which specializes in trustless randomization.

On October 1, EigenLayer unveiled its own EIGEN token. It is designed to protect protocols from a wider range of failures than can be addressed by existing Proof-of-Stake tokens like Ether, according to EigenLayer.

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