As the restaking ecosystem evolves, Kelp remains committed to ensuring transparency and fairness in the distribution of EIGEN tokens to our valued restakers. In this blog, we delve into the methodology behind the distribution of EIGEN tokens and how it plays out across different categories of Kelp users.

Eligibility for EIGEN token distribution

• Phase 2 eligibility: All Kelp restakers who have accumulated EigenLayer Points based on the EigenLayer snapshot on March 15, 2024 are eligible for the EIGEN token in Phase 2 of the distribution
• Trading window privileges: There is no distinction in trading window privileges between Phase 1 and Phase 2, as detailed in EigenLayer’s official announcement

Distribution methodology

• Kelp restakers without claimed KEP: No change. Restakers who haven’t claimed any KEP will receive the EIGEN token in Phase 2, based on their accumulated points as of March 15, 2024.
• Kelp restakers with claimed KEP: Proportional allocation. Restakers who claimed KEP and held 100% of it in their wallets will receive EIGEN token allocations based on their accumulated points as of March 15, 2024.
• KEP liquidity providers: Users who currently hold LP positions in recognized KEP pools (Balancer and Uniswap) will have ~69.3%* of their effective KEP eligible for allocation in Season 1. The rest of their holdings will be eligible in Season 2.
• KEP buyers: People who bought KEP from the open market and currently hold it in their wallets will have ~69.3%* of their KEP holdings eligible for allocation in Season 1. The rest of their holdings will be eligible in Season 2.
• KEP sellers (partial): Kelp restakers who claimed KEP, partially sold their KEP and currently hold less than the claimed value will have ~69.3% of their KEP balance eligible for allocation in Season 1. The rest of their holdings will be eligible in Season 2.
• KEP sellers: Kelp restakers who claimed and sold KEP in the market or users who bought and sold KEP and no longer hold KEP in their wallets are not eligible for Season 1 allocation through KEP.

We are actively discussing the distribution methodology with the relevant teams involved to ensure fairness and transparency. We encourage our community members to join our Discord / Telegram channels to share any feedback regarding the distribution process.

As we navigate through these developments, we remain committed to keeping our community informed and engaged every step of the way. Stay tuned for further updates and announcements.

*Note: As of now, 69.3% of KEP holdings of KEP buyers and LPs are eligible for Season 1 of EigenLayer’s Stakedrop and the rest of the 30.7% are eligible for Season 2. The distribution percentage mentioned is subject to change based on further discussions and updates from the teams involved.