Strengthening EigenLayer’s Security: The Newly Formed Protocol Council

The Eigen Foundation has announced the formation of the Protocol Council, a significant step in ensuring protocol security and evaluating EigenLayer Improvement Proposals (ELIPs). This development aims to advance the protocol and support ecosystem growth, marking a pivotal step in the evolution of EigenLayer’s decentralized governance.

What is EigenLayer?

EigenLayer is a protocol built on Ethereum that introduces restaking, a feature allowing already staked ETH to also secure various other applications. This innovation enables users to use their staked ETH to provide security for decentralized services like sequencers, oracles, and data availability layers, opening up new possibilities across decentralized applications.

Role of the Protocol Council

The newly formed Protocol Council will be instrumental in directing and overseeing the introduction of new features, ensuring that all improvements are well-vetted and support the protocol’s long-term objectives. The council will foster broader ecosystem development and empower community-driven contributions.

Community Engagement and Rewards

In addition to the formation of the council, Eigen has launched the Eigen Council Telegram group, offering the community an opportunity to actively participate in governance, vote on proposals, and submit ideas. Active voters will receive EIGEN tokens as rewards, making the process more engaging.

With the Protocol Council’s arrival, we’re also launching the Eigen Council Telegram. These users will be allowed to partake in proposals to help shape the Eigen DAO, active voters will receive $EIGEN as a reward.

Restaking and Token Support

EigenLayer also supports restaking with any ERC-20 token, a feature introduced in August 2024 with the launch of permissionless token support on its mainnet. This allows stakers to use various ERC-20 tokens, including stablecoins and Bitcoin denominated assets, to secure additional networks and earn rewards.

Additional Features and Token Performance

EigenDA, a service on EigenLayer, provides low-cost data availability for rollups, supporting custom quorums secured by restaked ERC-20 tokens. As of January 14, the EIGEN token is trading at about $2.98, with a 24-hour trading volume of over $137.35 million and a market cap of $630 million.

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