Yahya 
The crypto world is such a place where expectation precedes reality. EigenLayer is an example of this, a staking platform on Ethereum, where in the first year $16 billion of crypto deposits were made. However, although EigenLayer’s quick rise to fame was considered a major accomplishment, the enthusiasm surrounding its imminent token distribution was ruined by a storm of criticism, indicating that its points-based rewards system is flawed.
A Highly Anticipated Event Marred by Discontent
The growth of EigenLayer was rapid, when value proposition for future rewards and points plan became popular for users to deposit funds into the platform. The attractive offer of collecting points, some of which could be exchanged into tokens, was too hard to resist for many, and within a single year, billions of dollars flooded into the project. But as the awaited EIGEN token’s airdrop was coming, the community discontent became critical.
The fact that EIGEN tokens would not be transferable after they were distributed came as a surprise to many, finally contradicting the image that EigenLayer’s loyalty points program was trying to build for months. Luxas Outumuro of IntoTheBlock however pointed out that there was the expectation mismanagement where there was lack of clarity on the token accessibility since day one.
The Unraveling of Points Programs: Is This the End?
EigenLayer’s choice to exclude certain regions from the airdrop only fueled more outrage. Users from many countries, such as the United States, Canada, and China were left out too although they had participated in the earlier stages of the project. This step, seen as capricious and excluding, only increased the intensity of the discord in the community.
Making things worse was the obscure nature of EigenLayer’s token distribution program which left many depositors in the dark as to whether or not they were eligible for EIGEN tokens. Lack of information about “Season 2” airdrop increased the confusion, especially for users, who were interacting with EigenLayer through third-party platforms.
EigenLayer backlash echoes other dissatisfaction in cryptocurrency ecosystem with point rewards systems. Renzo and Blur projects received analogous criticisms which signified an increasing dissatisfaction with this model of incentive. Mike Silgadze of Ether deplored the fact that in points realizing there are inherent risks of communication problems and frustrated hopes.
Performed these worries by Robert Leshner, founder of Compound that pointed programs would become less common. Transparency and investor protection were what he was stressing, which was an opinion shared by many in the community.
While EigenLayer deals with the aftermath of its controversial airdrop, the wider crypto world is left with questions as to the effectiveness and the longevity of reward systems based on points. In spite of the appeal associated with incentives, the dangers of mismanagement and opacity are significant, thus, there are serious doubts on the future of this promising approach.