VCs secretly cashed out rewards on ‘locked’ EIGEN tokens
EigenLayer leaders have today admitted to withholding the full truth about its massive insider allocations, specifically that they claimed a majority of its supply was not for sale (in ‘full lock’) despite wealthy insiders being allowed to cash out rewards. Back in April, EigenLayer became one of Ethereum’s largest yield-boosting protocols with $15.7 billion in assets. Fast-forward to today, and its fully diluted value has crashed 60%. EigenLayer admitted its sneaky practices in a belated transparency disclosure. Eigen Labs and Eigen Foundation posted disclosures on the treatment of investor staking rewards, which we summarize in this tweet, responding to community questions. – Eigen Labs disclosure: https://t.co/SYspTxM3Nd – Eigen Foundation disclosure: https://t.co/xPebLKNtj9… — EigenLayer (@eigenlayer) October 2, 2024 Buoyed by $100 million from Andreessen Horowitz (a16z) and tens of millions from other Silicon Valley luminaries, EigenLayer claimed it could c...