Eigen Foundation Proposes Adjusting EIGEN Token Incentives to Provide Higher Rewards for Active Users

BlockBeats News, December 20, the foundation behind the EigenLayer re-staking protocol has proposed a governance change aimed at introducing a new incentive mechanism for its EIGEN token and adjusting the protocol's reward strategy to prioritize efficient network activity and fee generation.

Under this plan, a newly formed Incentive Committee will be responsible for managing token issuance, prioritizing rewards for those who ensure AVS security and expand the EigenCloud ecosystem. The proposal includes a fee model that will return AVS rewards and EigenCloud service income to EIGEN holders, which could create deflationary pressure as the ecosystem grows.

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