Eigen Foundation Proposes Enhanced Incentives for Active Restakers to Boost Ecosystem Growth

The Eigen Foundation has unveiled a strategic initiative to amplify rewards for participants actively restaking on the Eigen protocol. A newly proposed Incentive Committee will oversee token emissions, directing preferential rewards toward those securing Active Validated Services (AVSs). This MOVE aims to align economic incentives with network utility while potentially creating deflationary pressure as adoption scales.

Revenue from EigenCloud services and AVS rewards will FLOW back to EIGEN holders through a novel fee model. The foundation emphasizes that this restructuring strengthens long-term token value by tethering rewards to real-world usage. Operators and restakers stand to gain from improved capital efficiency, while the protocol benefits from reinforced security through aligned stakeholder incentives.

Three key improvements underpin the ELIP-12 proposal: centralized fee collection from EigenLayer and EigenCloud, redistribution mechanisms favoring productive network participants, and dynamic tokenomics designed to appreciate with ecosystem expansion. The changes reflect a maturation of decentralized finance models, where value accrual directly correlates with protocol activity.