Cryptocurrencies

    Eigenlayer unveils EIGEN token for Ethereum staking and off-chain data consensus

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    Eigenlayer, a blockchain network, has announced through a whitepaper released on April 29, its new token, EIGEN (CRYPTO:EIGEN).

    Designed for Ethereum (CRYPTO:ETH) staking, the token aims to facilitate consensus on off-chain but verifiable data, such as predicting outcomes of events, effectively storing data, or enabling functionalities in gaming virtual machines.

    EIGEN is integral for applications that depend on a collective agreement, expanding its utility beyond traditional transaction validations.

    The protocol allows Ethereum stakers to "restake" their Ether (ETH) on Eigenlayer, offering them an opportunity to earn additional rewards by validating transactions across both platforms.

    This innovative approach leverages the existing security of Ethereum, enhancing trust and security without the need to establish a separate token's reliability from scratch.

    However, the white paper also details that the airdrop for the new token will not be available in certain jurisdictions, including the United States and Canada, which could affect the token's distribution and its initial consensus process.

    Despite the geographical restrictions, EIGEN's integration continues to support the consensus on data verifiable on-chain, complementing the role of staked Ether in maintaining the network's integrity and trustworthiness.

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