EigenLayer (EIGEN), a liquid staking protocol, has implemented changes to its protocol to address the controversy surrounding its staking rewards for early investors. The controversy arose when it was revealed that early backers were allowed to stake their locked-up tokens and earn rewards, raising concerns over token distribution and price manipulation. In response, EigenLayer formalized its protocol on July 30th, limiting the total annual rewards for EIGEN stakers to 1% of the initial token supply. Additionally, 25% of the program's incentives are allocated to EIGEN stakers, with the remaining 75% allocated to staking other tokens like ETH. Despite these adjustments, the controversy over EigenLayer's perceived lack of transparency continues.

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