ARPA

EigenLayer

Rewards

EigenLayer, Ethereum’s largest restaking protocol, is upgrading its rewards program to grant more flexibility to protocols and restakers, according to a Dec. 6 blog post.&nbsp;
The changes let third-party protocols using EigenLayer — dubbed actively validated services (AVSs) — distribute rewards to validators based on performance. They also let validators, or “operators,” set fee rates independently, EigenLayer <a data-ct-non-breakable="null" href="https://www.blog.eigenlayer.xyz/coming-soon-rewards-v2/" rel="null" target="null" text="null" title="null">said</a>.
The upgrades are “designed to bring greater flexibility, efficiency, and customization to rewards within the EigenLayer ecosystem,” the restaking protocol <a data-ct-non-breakable="null" href="https://x.com/eigenlayer/status/1865085288084828496" rel="null" target="null" text="null" title="null">said</a> in a Dec. 6 post on the X platform.
EigenLayer said the upgrades will launch on the mainnet in January.
<figure>
 <img alt="EigenLayer to upgrade restaking rewards" src="https://s3.cointelegraph.com/uploads/2024-12/01939da6-4b93-7846-ad13-96186abad888" title="">
 <figcaption style="text-align: center;">
 EigenLayer AVSs. Source: EigenLayer
 </figcaption>
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<h3 id="largest-restaking-protocol">Largest restaking protocol&nbsp;</h3>
Launched in 2023, EigenLayer has secured dozens of AVSs, with nearly $19 billion of restaked collateral, <a data-ct-non-breakable="null" href="https://defillama.com/protocol/eigenlayer" rel="null" target="null" text="null" title="null">according</a> to DefiLlama.
Restaking involves taking a token that has already been staked — posted as collateral with a validator in exchange for rewards — and using it to secure other protocols simultaneously.&nbsp;
Some 20 AVSs are already live on EigenLayer’s mainnet, and dozens more are in development. 
They include EigenDA — an AVS run by EigenLayer developer Eigen Labs — and ARPA Network, which specializes in trustless randomization.
On Oct. 1, EigenLayer unlocked its native token, EIGEN. It is designed to secure protocols against a broader set of faults than are addressable using existing proof-of-stake tokens, such as Ether (<a data-ct-non-breakable="null" href="https://cointelegraph.com/ethereum-price" rel="" target="_self" text="null" title="https://cointelegraph.com/ethereum-price">ETH</a>), <a data-ct-non-breakable="null" href="https://www.blog.eigenlayer.xyz/eigen/" rel="null" target="null" text="null" title="https://www.blog.eigenlayer.xyz/eigen/">according</a> to EigenLayer.
As of Dec. 6, EIGEN trades at around $4.92, implying a fully diluted market capitalization of nearly $8.25 billion, <a data-ct-non-breakable="null" href="https://coinmarketcap.com/currencies/eigenlayer/" rel="null" target="null" text="null" title="null">according</a> to CoinMarketCap.
<figure>
 <img alt="EigenLayer to upgrade restaking rewards" src="https://s3.cointelegraph.com/uploads/2024-12/01939da6-ceed-7918-b307-68941789b82c" title="">
 <figcaption style="text-align: center;">
 Source: <a data-ct-non-breakable="null" href="https://defillama.com/protocol/eigenlayer" rel="nofollow noopener" target="_blank" text="null" title="https://defillama.com/protocol/eigenlayer">DefiLlama</a>
 </figcaption>
</figure>
<h3 id="rewards-program">Rewards program</h3>
On Sept. 17, EigenLayer launched a programmatic incentives program to woo restakers.
The program will reward restakers with EIGEN emissions comprising approximately 4% of the token’s total supply.
“Stakers will get programmatic rewards depending on how many AVSs they serve, and AVSs will pay fees to stakers and operators,” EigenLayer’s founder, Sreeram Kannan, <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/eigenlayer-eyes-consumer-adoption-post-unlock" rel="" target="_self" text="null" title="https://cointelegraph.com/news/eigenlayer-eyes-consumer-adoption-post-unlock">told Cointelegraph in October</a>.
“The more AVSs pay, the more value gets allocated,” said Kannan.
<a data-ct-non-breakable="null" href="https://arpa.medium.com/arpa-avs-launches-season-1-community-rewards-through-eigenlayer-programmatic-incentives-5ea0fcda423e" rel="null" target="null" text="null" title="null">Since September</a>, ARPA Network has distributed 14,000 native ARPA tokens to restakers each week as part of EigenLayer’s rewards program.
Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/crypto-four-years-grow-cant-be-shut-down-kain-warwick-infinex/" rel="null" target="null" text="null" title="https://cointelegraph.com/magazine/crypto-four-years-grow-cant-be-shut-down-kain-warwick-infinex/">Crypto has 4 years to grow so big ‘no one can shut it down’: Kain Warwick, Infinex</a>

EigenLayer to upgrade restaking rewards

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