EigenLayer Advances Ethereum's Security Amid Controversies

2025-10-15 13:15

EigenLayer, developed by Sreeram Kannan's Eigen Labs, is playing a pivotal role in Ethereum's evolution by allowing protocols to enhance security through restaking. The project has successfully raised over $100 million and once held $20 billion in total value locked. Despite its success, EigenLayer faced criticism in 2024 over token distribution practices and potential conflicts of interest, particularly concerning large airdrops to employees. In response, Eigen Labs imposed restrictions on ecosystem airdrops to its staff. Despite these challenges, EigenLayer continues to grow, securing partnerships with industry giants such as Google Cloud and Coinbase, underscoring its importance in the blockchain ecosystem.

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