- 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, lately criticized the Ethereum-based Liquid re-staking protocol EigenLayer, labeling it a possible “VC rip-off.” Neuner made his stance recognized by means of an X publish, 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 situation 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 could reward early contributors with 25.5% of the full token provide. These tokens, nevertheless, will likely 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 lately 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 getting ready to launch an Airdrop assortment web page on Might 10. The protocol introduced that the marketing campaign can be managed by a newly established impartial nonprofit basis accountable for distributing the native token.
Nevertheless, the mission has not escaped criticism from Neuner, who has voiced issues concerning the distribution technique and construction. He burdened that enterprise capitalists profit from early entry at low valuations, whereas retail buyers face a excessive absolutely diluted valuation (FDV) with initially low circulation.
Neuner additionally highlighted the disadvantages for retail buyers, reminiscent of lack of entry to insider info, regional restrictions on the airdrop, and managed token lockups. Given these elements, he opined, “Any retail investor that buys this within the first 3 years will likely be punished.”
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