According to Dune Analytics, the protocol has received over 12,412 withdrawal requests in just the last three days.
The wave of withdrawals started on April 29, soon after EigenLayer released a white paper on its EIGEN token’s distribution and uses.
Rising Withdrawals Following EIGEN Token White Paper Release
On that day alone, the platform saw 4,336 withdrawals, a number that escalated to 6,496 by April 30. This surge in withdrawals corresponds directly with the discontent among users after learning about geographic restrictions on the airdrop.
The EIGEN airdrop faced backlash upon the revelation that participants from several jurisdictions. This includes the United States, Canada, and various countries in Africa and Asia, would be excluded. This exclusion sparked significant frustration among EigenLayer’s users, leading many to withdraw their stakes from the platform.
After a lot of hype and initial buzz, many people were disappointed with @eigenlayer's new token announcement and airdrop, $EIGEN.
Let’s take a look at the details – as always, do your own research. 🧵 pic.twitter.com/X7luLU2vrs
— Cointelegraph (@Cointelegraph) April 30, 2024
With over 107,000 unique depositors, about 11.6% have withdrawn their funds following the announcement. This mass exodus not only reflects the immediate impact of the airdrop’s policy decisions. Also, it raises questions about the long-term implications on investor trust and protocol stability.
More About EigenLayer’s Withdrawals
EigenLayer’s strategy for the EIGEN token was to enhance the functionality and inclusivity of its staking services. However, the restrictive nature of the airdrop has instead led to a notable decrease in participation. The protocol’s attempt to innovate and reward its users has, paradoxically, resulted in a substantial reduction in user engagement.
I bet you've heard about the EigenLayer's Airdrop
First of, EigenLayer is an incredible project that enhances Ethereum like never before! That been said…
Here are some of the main deceptions:
🔹EigenLayer team and investors are getting 55% and takers are getting only 5%… pic.twitter.com/JLfGtzGAAh
— CryptoRodo (@RodolfoPozoA) April 30, 2024
This situation serves as a critical reminder of the importance of clear communication and inclusive policy planning in the crypto sector. Excluding large swathes of the global market can have immediate and severe repercussions for blockchain initiatives, particularly those that rely heavily on a diverse and active user base.
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