EigenLayer launched in June 2023, and it has been quite a sensation since then for good reason. Besides facilitating a scalable security mechanism — i.e., restaking — it promised novel revenue streams for stakers.
Until recently, the community primarily accessed native rewards on EigenDA. However, ARPA has shifted this dynamic by becoming the first Attestation Verification Service (AVS) in the EigenLayer ecosystem — outside of EigenDA — to offer restaking rewards through EigenLayer’s Programmatic Incentives system.
Season 1: Introducing Community Rewards
ARPA’s inaugural community reward program, Season 1, ran from September 12 to 26, distributing a total of 14,000 ARPA tokens to ETH/LST and EIGEN restakers. The program served as a trial run to gauge community interest and gather feedback for future iterations.
Leveraging Programmable Incentives
ARPA is a top AVS on EigenLayer, both in terms of the number of stakers and the total value staked. True to its leadership in the ecosystem, ARPA became the first AVS to implement EigenLayer’s latest reward-sharing model, i.e., Programmable Incentives. This system is designed to enhance scalability, cost-effectiveness, and community engagement in blockchain staking services. By leveraging this mechanism, AVSs like ARPA can offer additional rewards, enabling stakers and operators to receive EIGEN tokens alongside native rewards.
According to EigenLayer’s announcement, the program plans to distribute over 4% of EIGEN’s total supply in its first year, highlighting substantial opportunities for community involvement.
AVS Rewards Season 2: Bigger, Longer, More Inclusive
Building on the initial success and feedback from Season 1, ARPA has launched Season 2 of its community rewards program, featuring increased rewards and an extended duration. Key details include:
- Duration: 70 days
- Total Rewards: 140,000 ARPA tokens
- Distribution:
- 50% (70,000 ARPA) allocated to ARPA restakers
- 35% (49,000 ARPA) allocated to ETH/LST restakers
- 15% (21,000 ARPA) allocated to EIGEN restakers
A significant development in Season 2 is the inclusion of ARPA token stakers in the rewards program. With $ARPA now accepted as a staking asset on EigenLayer, token holders have the opportunity to stake their ARPA tokens directly, potentially enhancing their earning capabilities while contributing to network security.
ARPA’s role as a pioneering AVS in offering rewards through EigenLayer’s Programmable Incentives may influence other AVSs to adopt similar models. By broadening participation and providing tangible incentives, such initiatives could strengthen network security and foster greater community engagement across the ecosystem.
