As outlined in a blog post, EigenLayer, one of the largest restaking protocols on Ethereum, is launching its rewards v2 upgrade program. T he rewards v2 upgrade marks the first EigenLayer Improvement Proposal under the newly launched EigenLayer Governance Process. The updates, which are expected to benefit external protocols using EigenLayer are expected to launch on the mainnet in January 2025 . EigenLayer enables restaking for extra revenue and fee flexibility The EigenLayer rewards v2 upgrade will allow third-party protocols utilizing EigenLayer, known as actively validated services (AVSs), to distribute rewards to validators based on their performance. According to EigenLayer , they also let validators, or “operators,” set fee rates independently. This proposal will allow better economic viability and to attract diverse participants. EigenLayer rewards v2 also supports batch reward claiming. Stakers and operators can claim multiple rewards in a single transaction, which significantly reduces gas costs. EigenLayer is regarded as one of the foremost restaking protocols on Ethereum. It allows ETH stakers to re-use their staked tokens on the consensus layer. Participants grant permission to EigenLayer’s smart contract to impose extra slashing conditions on their staked ETH in exchange for additional revenue opportunities through service provision. EigenLayer secures $19 billion in restaked collateral and EIGEN token launch Launched in 2023, EigenLayer has secured dozens of actively validated services (AVSs) and nearly $19 billion in restaked collateral, according to DefiLlama . Restaking involves using tokens that have already been staked — posted as collateral with a validator in exchange for rewards — to secure other protocols simultaneously. Currently, around 20 AVSs are live on EigenLayer’s mainnet, with many more in development. These include EigenDA, an AVS run by EigenLayer developer Eigen Labs, and ARPA Network, which specializes in trustless randomization. On October 1, EigenLayer launched its native token, EIGEN, designed to secure protocols against a broader range of faults than traditional proof-of-stake tokens like Ether (ETH), as stated by EigenLayer. In addition, EigenLayer launched a programmatic incentives initiative on September 1 to attract restakers. The program will reward restakers with EIGEN emissions, accounting for around 4% of the token’s total supply. Since September, ARPA Network has distributed 14,000 native ARPA tokens weekly to restakers as part of EigenLayer’s rewards program. With the upcoming rewards v2 upgrade, EigenLayer continues to innovate in the Ethereum ecosystem, creating new opportunities for validators, stakers, and protocols alike. As of December 6, EIGEN is trading at approximately $4.41, with a fully diluted market capitalization of nearly $7.36 billion according to CoinMarketCap data. A Step-By-Step System To Launching Your Web3 Career and Landing High-Paying Crypto Jobs in 90 Days.
