A rewards program for stakers and operators protecting Actively Validated Services has been announced by EigenLayer Foundation.
As stated in a blog post, the Ethereum restaking protocol will implement a new incentive scheme that grants 4% of the total supply of EigenLayer (EIGEN). EigenLayer facilitates the connection between various restaking protocols, while stakers and operators contribute to the security of AVSs by restaking their ETH.
As a result, they are rewarded with staking prizes. Upon launching the new initiatives, stakers and node operators will receive token-based payouts directly from AVSs over the EigenLayer protocol for the first time.
Additionally, as part of the new EIGEN programming incentives scheme, 4% of the supply will be allocated to beneficiaries through “rewards boost” distributions. In this scenario, individuals who bet and operate will be rewarded in proportion to the distribution of AVSs.
The implication is that the EigenLayer Foundation will allocate a more significant number of tokens to network participants who support a higher number of AVSs. The blog post read:
“The goal of this design is to incentivize AVSs to begin distributing rewards to stakers and operators early, to benefit from and obtain a larger share of the early EIGEN programmatic incentives”
A program designed to provide advantages to newly appointed AVSs. EigenLayer intends to support AVSs, especially those that cannot currently issue rewards immediately upon launch. Stakers and operators who endorse such AVSs will continue to get modest doses of EIGEN.
The “rewards floor” will be accessible separately from the main incentives boost, enabling every authentic AVS to distribute rewards to its stakers and operators. EigenLayer suggests that this will motivate new services that are actively verified to join the EigenLayer ecosystem.
The debut of AVS rewards is imminent and expected to occur within the next few weeks. On the other hand, programmatic incentives will be implemented in the upcoming months.
EigenLayer, which introduced its contracts to the mainnet in June of the previous year, has witnessed a total of 4.8 million ETH and over 108 million EIGEN being restated. A total of 16 AVSs have been launched, and there are more than 300 operators.
