Key Points
- Ether.fi, the largest liquid restaking protocol on Ethereum, has announced an upcoming airdrop of governance tokens.
- Following community backlash against a large token allocation to TRON founder Justin Sun, Ether.fi has promised to adjust the token distribution.
Ether.fi, a major liquid restaking protocol on Ethereum, has disclosed plans for an airdrop of its governance tokens.
The token, known as ETHFI, will have a total supply of 1 billion, with an initial circulating supply of 115.2 million.
Airdrop Stages and Eligibility
The airdrop will take place in two stages. The first stage, named Season 1, will release 6% of the total token supply, covering behavior up to March 15. Season 2 will release 5% of the remaining tokens and will cover behavior from March 15 to an unspecified future date. The remaining tokens will be distributed among investors, partnerships, core contributors, and the protocol’s treasury.
For airdrop eligibility, Ether.fi has outlined several criteria, such as holding eETH, referring a friend to the protocol, or participating in the protocol’s Early Adopter Program. Larger wallets, dubbed “whale wallets,” will need to wait 3 months to claim their tokens, while smaller wallets can claim instantly.
Community Backlash and Response
After the announcement, community members noticed that Justin Sun, the controversial founder of TRON, would receive nearly 3.5 million tokens out of the initial 60 million token allocation, following a deposit of 20,000 eth. This led to widespread complaints from Ether.fi’s community members.
In response to the backlash, Ether.Fi founder Mike Silagadze announced that more tokens would be airdropped to community members, with further details forthcoming. Silagadze also defended Sun’s allocation, stating that just because someone made a large deposit does not mean the rules would be changed on them. He expressed appreciation for Sun’s support and promised to honor the campaign rules.
Ether.fi, powered by the restaking protocol EigenLayer, has over $3 billion in total value locked. This value is over twice the size of its nearest competitor. Recently, Ether.Fi announced it had raised $27 million in venture funding, split between a SAFE and a Series A.
