Ran Neuner Criticizes EigenLayer’s Token Distribution Technique

• Ran Neuner criticized EigenLayer as a possible “VC rip-off.”
• EigenLayer’s Whitepaper reveals allocations for airdrops, group initiatives, ecosystem improvement, and preliminary buyers.
• Regardless of latest protocol updates, Neuner stays skeptical.

Ran Neuner, host of CNBC’s “Crypto Dealer” and founding father of Crypto Banter, not too long ago criticized the Ethereum-based Liquid re-staking protocol EigenLayer, labeling it a possible “VC rip-off.” Neuner made his stance identified by an X submit, stating that the mission is “a scheme the place VC insiders fleece retail buyers once more.” 

Neuner’s statements adopted Eigen’s launch of its Whitepaper on April 29. The re-staking protocol revealed plans to problem 1.67 billion EIGEN tokens. Per its whitepaper, Eigen will distribute 15% of the tokens for airdrops and allocate one other 15% for group initiatives. As well as, it targets 15% for ecosystem improvement and 29.5% for the preliminary token buyers.

The protocol additionally disclosed that it will reward early contributors with 25.5% of the entire token provide. These tokens, nonetheless, will probably be locked up for 3 years. The lockup features a full freeze within the first yr, adopted by a gradual launch over the next two years at a price of 4% per 30 days.

Moreover, Eigen Labs not too long ago introduced key updates to its EigenLayer protocol, together with eradicating all caps on its Liquid Staking Token (LST) and resuming re-staking deposits. 

Alongside these developments, EigenLayer is making ready to launch an Airdrop assortment web page on Might 10. The protocol introduced that the marketing campaign could be managed by a newly established unbiased nonprofit basis answerable for distributing the native token.

Nonetheless, the mission has not escaped criticism from Neuner, who has voiced considerations concerning the distribution technique and construction. He confused that enterprise capitalists profit from early entry at low valuations, whereas retail buyers face a excessive totally diluted valuation (FDV) with initially low circulation. 

Neuner additionally highlighted the disadvantages for retail buyers, equivalent to lack of entry to insider data, regional restrictions on the airdrop, and managed token lockups. Given these components, he opined, “Any retail investor that buys this within the first 3 years will probably be punished.”