Eigenlayer team launches EIGEN token – but it’s non-transferable till September

The Eigenlayer team launched a claims process for its highly anticipated EIGEN token, but it won’t be transferable to others until further features are added.

Ethereum restaking protocol Eigenlayer launched its token-claim process or “airdrop” for Season 1, Phase 1 rewards, according to a May 10 blog post from the protocol’s development team. The claims process will allow users who are owed the new EIGEN token to finally acquire it, after weeks of waiting. However, EIGEN is currently non-transferable, so users cannot sell it. 

According to the post, EIGEN will become transferable after the team implements new features in the coming months. September 30 is the tentative target date for these implementations. The claim process will close on September 7, and users who do not claim before that date will be unable to receive their tokens.

According to Eigenlayer documents, the token is not available to users in over 30 jurisdictions, including the United States, Russia, China, and Canada. Most VPN server addresses are also banned from being used to claim it.

Related: Eigenlayer releases EIGEN white paper, bans airdrop for US users

A total of 6.05% of the EIGEN total supply has been unlocked through the claims process, and an additional 0.7% will be unlocked from “Phase 2” starting in mid-June, the post stated. Beginning in mid-June, users of Kelp, Pendle, Equilibrium, and other, “similar” apps will be able to start claiming their tokens, whereas the current airdrop is limited mostly to users who restaked Ether (ETH) or its liquid staking derivatives on Eigenlayer prior to March 15.

Users of liquid restaking tokens (LRTs) can also claim their rewards now, as long as their activities are not categorized as part of “phase 2.” In addition, users who restaked on Eigenlayer “between March 15th and April 29th” can claim their 100 bonus tokens now, while the bulk of their claims will be available in mid-June along with other Phase 2 participants.

The EIGEN airdrop has been controversial in the decentralized finance community. Kuyen Labs co-founder Leandro Schlottchauer claimed that it would probably be the last of “life-changing airdrops.” On the other hand, many Eigenlayer users have criticized the airdrop for banning VPN servers, distributing a non-transferable token, and using what they consider to be a short snapshot period.