What are EigenLayer Restaked Points?

What are EigenLayer Points?

Restaked Points are a key measure within the EigenLayer ecosystem, reflecting a user's contribution to its collective security. Defined as the time-integrated amount of ETH staked, these points are calculated in units of ETH hours, providing a quantitative representation of each participant's investment in the network's security through staking.

These Restaked Points also determine eligibility and the amount of EIGEN tokens distributed to participants. Specifically, Season 1 of the EIGEN token retroactively allocates a percentage of the initial EIGEN supply to restakers based on these points. This ensures that the distribution reflects users' contributions to maintaining the security and integrity of the EigenLayer ecosystem, rewarding them proportionally to their staking engagement.

At the time of writing, over 4.79 million points have been awarded to more than 100,000 users who have staked over 1.5 million ETH.

‍

How to Calculate Restaked Points

The formula used to calculate Restaked Points in the EigenLayer ecosystem is designed to measure how much and for how long a user has staked Ethereum (ETH). This is expressed as 𝑃𝑖𝑗 = ∫𝑡=0𝑇 𝑆𝑖𝑗(𝑡) 𝑑𝑡. Here's a simpler breakdown:

• 𝑃𝑖𝑗 refers to the total points earned by a particular staker for a specific type of token.
• 𝑆𝑖𝑗(𝑡) represents the amount of ETH staked by the user at any given time.
• The integral sign (∫) and the dt at the end of the formula mean we sum up all the staked ETH over a period from the start time (0) to end time (T).

So, in essence, this formula adds up how much ETH was staked and multiplies by how long each amount was held during the staking period. This results in a number that reflects both the quantity and the duration of ETH staked, which is then used to determine a user's contribution to the network's security through these points.

‍

Can I Sell Eigenlayer Restaked Points?

Yes, while EigenLayer Points are non-transferrable within the official ecosystem, there are OTC (Over The Counter) marketplaces that enable users to trade the future potential of these points. In such marketplaces, users can engage in peer-to-peer transactions that speculate on the future allocations those points might convert into when the token generation event occurs. 

On platforms like Whales Market, EigenLayer Points are being traded for 20 cents each, and the platform has seen over $6 million traded in this secondary marketplace.

‍

Eigenlayer Points Restrictions

EigenLayer Points come with strict geo-location restrictions that bar participants from certain regions, including the USA and UK, from partaking in Airdrops. This has led to significant dissatisfaction among potential investors from these areas who have expressed their grievances on social platforms like Twitter, criticizing EigenLayer for a lack of transparency and fairness, as they risked capital without eligibility for rewards.

‍

Closing Thoughts

In conclusion, EigenLayer Restaked Points are integral to quantifying individual contributions to the network's security and determining eligibility for EIGEN token airdrop. These points, calculated based on the duration and amount of ETH staked, play a fundamental role in fostering a secure and stable EigenLayer ecosystem. While officially non-transferrable within the ecosystem, they have spawned secondary OTC markets where their potential future value is traded.