$EIGEN is associated with EigenCloud and EigenLayer, an Ethereum-based infrastructure system built around the concept of restaking.
Normally, staked ETH helps secure Ethereum. EigenLayer extends this model by allowing assets such as native ETH, liquid staking tokens and $EIGEN to be restaked so that additional services can use cryptoeconomic security without creating an entirely separate security system from scratch.
The $EIGEN token introduces another concept called intersubjective staking. This is designed for situations where incorrect behavior may be obvious to independent observers but cannot always be proven automatically by Ethereum.
This makes EIGEN different from a token whose primary function is simply payments or governance.
When studying the network, useful metrics include the number of restakers, delegated ETH and EIGEN, active services using EigenLayer security, operator participation and whether applications are willing to pay for that security.
The important question is how much real economic demand develops around shared cryptoeconomic security.
Normally, staked ETH helps secure Ethereum. EigenLayer extends this model by allowing assets such as native ETH, liquid staking tokens and $EIGEN to be restaked so that additional services can use cryptoeconomic security without creating an entirely separate security system from scratch.
The $EIGEN token introduces another concept called intersubjective staking. This is designed for situations where incorrect behavior may be obvious to independent observers but cannot always be proven automatically by Ethereum.
This makes EIGEN different from a token whose primary function is simply payments or governance.
When studying the network, useful metrics include the number of restakers, delegated ETH and EIGEN, active services using EigenLayer security, operator participation and whether applications are willing to pay for that security.
The important question is how much real economic demand develops around shared cryptoeconomic security.