Today, with the rapid development of blockchain technology, token economics has become an important part of the digital asset field. Eigenpie is an innovative SubDAO created by Magpie, and its governance token EGP (Eigenpie Token) came into being in this context. This article will take a deep dive into EGP’s token economics, functionality, and its importance within the Eigenpie ecosystem.
Token Basic Information The basic information of EGP token is as follows:
Name: Eigenpie Token
Symbol: EGP
Total supply: 10 million
Token type: ERC-20
EGP is Eigenpie’s governance token and is designed to ensure the long-term sustainability and success of the EigenLayer Liquid Restaking landscape. As an ERC-20 token, EGP offers broad compatibility and flexibility, enabling it to be traded and used on multiple platforms.
vlEGP: Locking and Governance
An important feature of the EGP token is that it can be locked in Eigenpie at a 1:1 ratio, forming a voting locked EGP (vlEGP). Users holding vlEGP can not only receive participation rewards, but also be able to participate in Eigenpie’s governance decisions.
When EGP is locked to vlEGP, the token will be locked indefinitely. If the user wishes to unlock vlEGP, they must select the "Start Unlocking" option, which will trigger a 60-day waiting period. During this period, vlEGP holders will continue to receive rewards from Eigenpie but will lose voting rights. After the 60-day cooling-off period, users can redeem vlEGP back to EGP.
Forced unlocking mechanism
For those who want early access to their locked assets, Eigenpie offers the option to force unlock. Users can choose to perform a forced unlock of their locked EGP tokens before the end of the 60-day cooling period, subject to a certain penalty. Penalties start at 80% of the total EGP tokens locked and gradually decrease on a non-linear scale as the cool-down period progresses. This mechanism protects the stability of the system to a certain extent and also provides users with flexibility.
Token Distribution and Fund Management: The distribution of EGP tokens is carefully designed to support Eigenpie’s long-term growth and stability. The Magpie Treasury will receive 15% of the total supply of EGP tokens, which will be issued on a two-year vesting schedule. This distribution strategy not only reflects the commitment to vlMGP holders, but also provides a guarantee for the trust and support of the community.
Priority access and community engagement
Eigenpie Priority Access’s EGP token sale will take place on the Magpie Launchpad. Users can secure their EGP IDO assignment by joining any of the listed groups to gain priority access. This mechanism encourages users to actively participate and enhances the cohesion and activity of the community.
Eigenpie’s core mechanism: Eigenpie’s core mechanism is to re-stake ETH LST through EigenLayer, allowing users to convert their native ETH and liquidity-staking ETH tokens (LST) into isolated liquidity re-staking ETH tokens (LRT). This innovation enables users to receive rewards for staking Ethereum and earning EigenLayer simultaneously, without having to go through the lock-in period that comes with traditional staking. This flexibility provides users with more choices and opportunities, further driving the development of the Eigenpie ecosystem.
Conclusion: The future of EGP
As blockchain technology continues to develop, the EGP token plays an increasingly important role in the Eigenpie ecosystem. Its unique locking mechanism, forced unlocking option and fair and transparent token distribution strategy fully reflect its emphasis on users and the community. In the future, EGP will play a key role in promoting the sustainable development of the Eigenpie ecosystem and create more value and opportunities for users.
In this rapidly changing market, the success of Eigenpie and its EGP token will depend on community participation and support. As more users join, the potential of EGP will continue to be tapped, promoting the prosperity and development of the entire ecosystem.