EigenLayer prepares for EIGEN token transfer restrictions lift

EigenLayer will lift EIGEN token transfer restrictions on September 30, 2024
Stakeholders must observe a 7-day withdrawal period to unstake EIGEN tokens
Pre-market values EIGEN tokens at $3.4, with TVL dropping from $20B to $12B

EigenLayer, a prominent restaking protocol, is set to remove transfer restrictions on its native EIGEN token, enabling stakeholders to trade and transfer their tokens starting on September 30.

This significant update comes after months of anticipation, particularly following the protocol’s recent token distributions.

EIGEN token remain non-transferable

EigenLayer has been at the forefront of crypto innovation, allowing users to stake their ether (ETH) to secure third-party networks and other validated services. The platform’s native token, EIGEN, which was launched in April, plays a pivotal role in this ecosystem.

However, up until now, EIGEN tokens remain non-transferable due to restrictions in place following two major “stakedrop” events. The tokens remained locked, and stakeholders could not transfer or trade them.

With the lifting of these restrictions, EIGEN holders, including those who received airdropped rewards, will now have the ability to manage their assets freely.

For those who have staked their tokens, EigenLayer clarified that a mandatory 7-day withdrawal period must be observed for unstaking EIGEN. This adds a minor delay before tokens can be fully withdrawn and traded.

EigenLayer has experienced significant funds outflow

In pre-market trading, derivatives of the EIGEN token have been valued at approximately $3.4 billion, with a fully diluted valuation of $5.4 billion.

However, despite the initial success, EigenLayer has experienced a significant outflow of funds in recent months, reducing its total value locked (TVL) from $20 billion in June to $12 billion.

As the transferability date approaches, the platform’s future trajectory remains closely watched by the crypto community.