KEY TAKEAWAYS
- Eigen Labs introduces Rewards v2, enhancing flexibility and efficiency in the EigenLayer ecosystem.
- The upgrade allows Application-Specific Validators to dynamically incentivize operators with tailored reward mechanisms.
- Rewards v2 will be tested on the Holesky testnet in December, with a Mainnet deployment planned for January.
- This optional upgrade aims to drive significant value for the Eigen economy by addressing key use cases.
Eigen Labs has announced the introduction of Rewards v2, a protocol upgrade designed to enhance flexibility, efficiency, and customization within the EigenLayer ecosystem. This upgrade marks the first EigenLayer Improvement Proposal (ELIP), specifically ELIP-001: Rewards v2, utilizing the recently announced EigenLayer Governance process (EigenGov). The community is encouraged to participate in discussions about ELIP-001: Rewards v2 on the EigenLayer forum.
Key Features of Rewards v2
The Rewards v2 upgrade proposes several enhancements to platform rewards functionalities. These upgrades enable Application-Specific Validators (AVSs) to incentivize operators dynamically, allowing for tailored reward mechanisms that align with specific needs. The proposed changes include:
Operator-Directed Rewards: AVSs can reward operators based on performance or custom logic.
Variable Operator Fees: Operators can set their own fee rates per AVS, providing economic flexibility and attracting diverse participation.
Batch Rewards Claiming: Stakers and operators can claim multiple rewards in a single transaction, reducing gas costs.
Implementation Timeline
The implementation of ELIP-001 will begin on the EigenLayer Holesky testnet, with deployment scheduled for December 12th. Following thorough testing and integration by AVSs, the upgrade will be deployed on the Mainnet in January. The uptake of Rewards v2 will be monitored by indexing on-chain reward events to assess the success and improvements of the protocol.
Eigen Labs emphasizes that Rewards v2 is an optional, lightweight addition to existing reward structures and contracts. It addresses key use cases identified through feedback from AVSs and operators after the initial release of Rewards. With enhanced flexibility for AVSs, operators, and stakers, Rewards v2 aims to be a significant value driver for the Eigen economy.
For more details, visit the official announcement here.
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