Twohigh-profileEthereumresearchers,JustinDrakeandDankradFeist,havesteppeddownfromtheiradvisoryrolesatEigenLayer,arestakingplatform.

TheannouncementcametodayonX,asbothresearcherscitedtheirdesiretofocusentirelyontheEthereumbaselayer.DrakehadalreadyleftthepositioninSeptemberbutmadehisexitpublictoday.Hesaid:

“IwanttoapologizetotheEthereumcommunityandEF[EthereumFoundation]colleaguesforthedramaIcaused.”

Headmittedtheadvisoryrolewasa“badmove.”FeistaddedthatwhileEigenLayerremainsavaluableproject,Ethereumdemandshisfullattention.

Tensionsoverconflictofinterestandtokencompensation

ThetroublestartedbackinMaywhenitwasrevealedthatbothresearcherswereadvisingEigenLayer,whichranksamongthetopthreeDeFiprojectsonEthereumbyTotalValueLocked(TVL),accordingtoDefiLlama.

EigenLayer’ssuccesshadcausedconcernsabouttheimpartialityofEthereum’scorecontributors,especiallygiventheheftycompensationpackagesforadvisors.Drake’scontractreportedlyincluded“millionsofdollarsoftokensvestingoverthreeyears.”

AyaMiyaguchi,theEthereumFoundation’sexecutivedirector,respondedtothepublicbacklashbypromisingtoimplementaconflict-of-interestpolicy.InaMaypostonX,shesaid:

“Itisclearthatrelyingoncultureandindividualjudgmenthasnotbeensufficient,andwehavebeenworkingonaformalpolicytoaddressthisproblemforawhilenow.”

Miyaguchiindicatedthepolicywouldbefast-trackedtopreventsimilarissues.Whileaformalpolicyhasyettomaterialize,Drakehintedatchangesinhisownapproach.Hepledgedtoavoidfutureadvisorships,investments,andparticipationinsecuritycouncils,explaining:

“ThispersonalpolicygoesaboveandbeyondtherecentEF-wideconflictofinterestpolicy…becauseIwanttosignalcommitmenttoneutrality.”

EigenLayer’stokenairdropandongoingsecurityissues

EigenLayerhasbeenmakingheadlinesforotherreasonslately,launchingitsSeason2“stakedrop”campaign,amassiveairdropof86millionEIGENtokens,around5.1%ofitstotalsupply.Theairdropbreaksdownintothreeprimaryallocations:

StakersandOperators:Receiving70milliontokens,thelargestshare,reservedforuserswhoactivelystakeandoperatewithintheplatform.
EcosystemPartners:10milliontokensaredesignatedforpartneringprotocols,includingliquidstakingnetworks.
CommunityMembers:6milliontokenssetasideforearlyadvocatesandcontributors.

EigenLayercapturedtheairdropsnapshotonAugust15,withclaimsopeningonSeptember17.Buttheplatformhasbeeninplentyofsecuritytroubles.InOctober,itsawanunauthorizedsaleof1.67millionEIGENtokens,valuedatroughly$3.3each.

ThissaleraisedimmediatequestionsaboutviolationsofEigenLayer’slockuppolicy,whichbarscurrentandformeremployeesfromsellingorstakingtokensbeforeSeptember2025.ThewalletusedinthesalewaslinkedtoEigenLayer’sGnosisSafe,whichaddstotheconfusionsurroundinginternalcontrols.

ThishasledEigenLayertoreexamineitssecuritymeasuresandaddressweakpointsinitscomplianceprotocols.OnOctober18,asecuritybreachledtothetheftofapproximately$5.7million.

Anattackerusedaddressspoofingtomimicaninvestor,bypassingsecuritytosiphonfunds.Inresponse,EigenLayerhasbeenreviewingandtighteningitssecurityprotocols,hopingtofendofffuturebreaches.

ThetokenunlockedonOctober1,instantlyclimbingintothetop100cryptocurrenciesbymarketcap.EIGEN’sfullydilutedvaluationsurgedtoaround$7.2billion,withthetokentradingatapproximately$3.59.

Buttheunauthorizedsalesandhackingincidentshavemadethemarketskittish.Priceswingsanduncertaintydominatetrading,fueledbyquestionsovertheplatform’sinternalsecurityandgovernance.

cryptopolitan.com