Cracks Appear in EigenLayer Foundation as Key Figures Depart

A tremor runs through the EigenLayer ecosystem. Two prominent Ethereum Foundation researchers, Dankrad Feist and Justin Drake, along with Chief Growth Officer Calvin Liu, have recently resigned from their advisory and leadership roles within the project, raising questions about the future direction of this ambitious “restaking” protocol. The departures, coupled with a significant drop in the $EIGEN token price, signal potential turbulence for a project once touted as a key component of Ethereum’s evolving infrastructure.

The resignations began in September with Calvin Liu stepping down as Chief Growth Officer of the Eigen Foundation. This departure, while significant, did not immediately trigger widespread alarm. However, the situation intensified just this weekend when both Feist and Drake publicly announced their resignations from their EigenLayer advisory positions.

Both researchers joined EigenLayer’s advisory board in May 2024, accompanied by a substantial $EIGEN token incentive. Their involvement lent considerable credibility to the project, given their esteemed reputations within the Ethereum community. However, their subsequent departures, seemingly prompted by concerns over conflicts of interest and perceived compromises to their neutrality, have cast a shadow over EigenLayer.

In a detailed explanation posted on X (formerly Twitter), Justin Drake apologized to the Ethereum community and his colleagues at the Ethereum Foundation for the “drama” caused by his involvement with EigenLayer. He admitted that accepting the advisorship was a “bad move,” acknowledging the importance of perceived neutrality for researchers working on core Ethereum protocols. Going forward, Drake pledged to decline all advisorships, angel investments, and security council positions to maintain his focus on Ethereum’s Layer 1 research and development. He also stepped down from the “ultra sound” team, an initiative focused on improving Ethereum’s consensus layer.

Dankrad Feist, in his own X post, echoed similar sentiments. He explained that while he believed his role was negotiated in good faith, he recognized the perception of a conflict of interest, particularly given his role as an Ethereum researcher. He affirmed his belief in EigenLayer’s potential but emphasized his commitment to prioritizing work on core Ethereum projects, including the implementation of Danksharding.

EigenLayer, founded in early 2021 by Dr. Sreeram Kannan, aims to enhance Ethereum’s functionality by allowing validators to “restake” their ETH. This innovative approach enables the reuse of Ethereum’s security for other applications and protocols built on top of it, fostering a more modular and interconnected blockchain ecosystem. However, these recent departures raise questions about the project’s future trajectory and its relationship with the broader Ethereum community.

In a recent update to the unfolding EigenLayer story, Ethereum Foundation researcher Justin Drake clarified on X (formerly Twitter) that he received no financial compensation for his advisory role with the project. Responding to a question about his earnings from the advisorship, Drake stated, “I didn’t make anything from this advisorship. None of the EIGEN tokens had vested when the advisorship was officially terminated back in September.” This clarification addresses concerns about potential financial motivations behind his involvement and subsequent resignation from the EigenLayer advisory board.

Cracks Appear in EigenLayer Foundation as Key Figures Depart

Following the news of these resignations, the price of EigenLayer’s $EIGEN token experienced a significant downturn. It fell by 9.74% to $2.38, with a 24-hour trading volume of $85,345,106. The token’s value has also declined by 15.36% over the past week and 30% over the past month, with its current market cap standing at $442.56 million. These market fluctuations reflect the uncertainty surrounding EigenLayer’s future in the wake of these high-profile departures. Whether the project can regain its momentum and maintain its vision remains to be seen. The coming months will be crucial for EigenLayer as it navigates these challenges and seeks to rebuild trust within the Ethereum community.

This article was updated on November 3, 2024, at 11:52 a.m. ET to include Justin Drake’s comments on his compensation from EigenLayer advisroship.

Yona has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Daily is an official media and publication of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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