Foundation behind restaking protocol EigenLayer plans bigger rewards for active users

Foundation behind restaking protocol EigenLayer plans bigger rewards for active users

Source: CoinDesk

Published:2025-12-19 16:43

BTC Price:$88542

#EIGEN #EigenLayer #Restaking

Analysis

Price Impact

High

The eigen foundation's proposal to introduce a new fee model, token buybacks, and programmatic token emissions for productive network activity represents a significant overhaul of eigen's tokenomics, aiming to create deflationary pressure and strengthen long-term value.

Trustworthiness

High

The information originates directly from the eigen foundation via a governance proposal and blog post, detailing official strategic changes.

Price Direction

Bullish

The new fee model channels revenue to eigen holders, and the introduction of token buybacks from avs rewards and eigencloud services will reduce circulating supply. prioritizing 'productive stake' incentivizes active participation, all designed to enhance value accrual and create deflationary pressure, which is bullish for the token's price.

Time Effect

Long

The proposed changes involve governance implementation, the establishment of an incentives committee, and the sustained impact of fee collection and token buybacks, which will take time to fully manifest and affect the token's supply and demand dynamics, aiming for 'long-term value accrual'.

Original Article:

Article Content:

Finance Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email Foundation behind restaking protocol EigenLayer plans bigger rewards for active users An Incentives Committee would direct programmatic token emissions, focusing allocations on participants that secure AVSs and contribute to the EigenCloud ecosystem. By Margaux Nijkerk | Edited by Aoyon Ashraf Dec 19, 2025, 4:43 p.m. What to know : The Eigen Foundation has unveiled a governance proposal aimed at ushering in new incentives for its EIGEN token, shifting the protocol’s reward strategy to prioritize productive network activity and fee generation. Under the plan, a newly formed Incentives Committee would manage token emissions, prioritizing participants who secure Actively Validated Services and expand the EigenCloud ecosystem. The proposal includes a fee model that channels revenue from AVS rewards and EigenCloud services back to EIGEN holders, potentially creating deflationary pressure as the ecosystem grows. The foundation behind restaking protocol EigenLayer has proposed a governance change to introduce new incentives for the EIGEN token, focusing on productive network activity and fee generation. Under the plan outlined in a recent blog post , a cornerstone of the proposal is the introduction of a fee model that channels revenue from Actively Validated Services (AVS) rewards and EigenCloud services back to EIGEN holders. AVSs’ are blockchain-based services that use EigenLayer’s security, relying on staked tokens and operators to keep it running honestly and correctly. STORY CONTINUES BELOW Don't miss another story. Subscribe to the Crypto Daybook Americas Newsletter today . See all newsletters Sign me up By signing up, you will receive emails about CoinDesk products and you agree to our terms of use and privacy policy . The team argues this change will strengthen long-term value accrual for EIGEN token holders and better align token economics with real usage of EigenLayer’s network. “This approach aligns incentives across the ecosystem: Stakers and Operators backing active services earn more, AVSs get the capital they need, and EIGEN benefits from improved tokenomics,” according to the blog post. EIGEN, the native utility and governance token of EIgenLayer, has fallen 91% this year , losing nearly $700 million in market cap as the broader crypto market has pulled back. EIGEN marketcap Dec. 19 2025 (CoinMarketCap) EigenLayer is an Ethereum-based protocol that lets users “restake” their crypto to help secure other blockchain services, effectively reusing Ethereum’s security across new applications. When it launched, the idea drew intense interest from developers, investors, and traders, making EigenLayer one of the most closely watched projects in crypto. Over time, however, enthusiasm waned as the system grew more complex and questions arose regarding incentives, risk, and long-term value. Token buyback However, the foundation is now looking to revamp the network and expand its reach via the new proposal. Under the proposed mechanism, 20% of AVS reward-related fees, once subsidized by EIGEN incentives, could be funneled into a fee contract designed for token buybacks. This will reduce the circulation of the available token while the ecosystem grows. Fees from cloud-based services, such as EigenAI, EigenCompute, and EigenDA, would similarly be directed toward buybacks after operational costs. The governance revamp responds to limitations in the existing “Programmatic Incentives” framework — a rewards system that in the past relied on issuing new tokens to increase supply and attract stakers and operators. While earlier versions distributed EIGEN token on a weekly schedule to support restaking and AVS participation, the team believes that the one-size-fits-all model has been somewhat of a strain on the network in recent weeks. To oversee the new mechanism, a new "Incentives Committee" would be created, focusing allocations on participants who actively secure AVS and expand the broader EigenCloud ecosystem. The committee, which will be composed of representatives from the Eigen Foundation and Eigen Labs, and subject to ratification by the Protocol Council, would have the authority to adjust emissions policies without resorting to lengthy contract upgrades. The timing of the changes coming out of this is still unknown, but the team said that the committee will publish those criteria in the future. If adopted, the proposal will aim to shift rewards toward tokens that are actively used on the network, rather than those that are simply restaked and left idle. Under the proposal, more incentives would go to what EigenLayer calls “productive stake” — tokens that help run and secure live services. Many of those tokens are “slashable,” meaning holders can lose funds if the service fails or behaves improperly. The idea is to better link rewards to real participation and risk, rather than passive ownership. Read more: a16z Bets Big on EigenLayer Again With $70M Token Buy to Back ‘EigenCloud’ Launch EigenLayer Ethereum News Governance Eigenlabs Plus pour vous Protocol Research: GoPlus Security Par CoinDesk Research 14 nov. 2025 Commissioned by GoPlus Ce qu'il : As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M. GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month. Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B. 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