EigenLayer Launches Rewards v2 with New Features, Now Live on Mainnet

29 October 2024 Move2earn Digest

AVSs can now assign rewards to operators based on performance or specific rules for more precise compensation.

Operators have the ability to set their own compensation rates, encouraging greater participation and customized partnerships.

Rewards v2 is the first upgrade under the EigenLayer Improvement Proposal (ELIP) using the new EigenGov process.

EigenLayer has officially its Rewards v2 upgrade, which went live on Mainnet on January 21 at 12:49 PM PST. This update marks a major step forward for the EigenLayer ecosystem, offering new features designed to make reward distribution more flexible, efficient, and tailored to the needs of participants.

The Rewards v2 upgrade brings key advancements. One of these is that AVSs can now assign rewards to operators based on performance or specific rules, ensuring that operators are recognized and compensated for their contributions in a more targeted manner.

Operators are also empowered to determine their own compensation rates for each AVS. By enabling operators to adjust fees, EigenLayer encourages broader participation and allows them to fine-tune their offerings to suit specific partnerships.

Furthermore, the upgrade introduces batch rewards claiming, allowing both operators and stakers to combine multiple reward claims into a single transaction, significantly reducing gas costs.

EigenGov and Protocol Council Drive Upgrade

Rewards v2 is the first upgrade introduced under the EigenLayer Improvement Proposal (ELIP). The team explained that the new project utilizes the EigenLayer Governance process (EigenGov), recently announced by the Eigen Foundation. Moreover, it represents the first Mainnet upgrade proposed and carried out by the Protocol Council. EigenLayer on X:

“This upgrade is the first EigenLayer Improvement Proposal (ELIP). ELIP-001: Rewards v2 uses the EigenLayer Governance process (EigenGov) recently announced by the Eigen Foundation! It is also the first Mainnet upgrade to be proposed and executed by the Protocol Council.”

The update ensures that existing AVS and operator codes or contracts remain unaffected. While the new features expand functionality, they do not disrupt the current system. However, participants using the Eigen Sidecar tool to manage and audit rewards data will need to upgrade to version 2.0.0 to access the latest capabilities. Additionally, the upgrades allow AVSs to reward operators in a more flexible manner, enabling the reward mechanisms to be customized to better suit the specific needs of each operator.

“These upgrades enable AVSs to incentivize operators dynamically, allowing for tailored reward mechanisms that better align with their specific needs. There are no breaking changes for existing AVS and Operator code or contracts. The functionality in Rewards v2 is additive of the existing rewards functionality. If you are running the Eigen Sidecar to view, audit, or verify rewards data, you will need to update to v2.0.0.”

As the first proposal under EigenGov, Rewards v2 also marks a step toward greater decentralization and community involvement in shaping EigenLayer’s future. The team previously Sidecar v2.0.0, designed to support the Rewards v2 protocol upgrade. EigenSidecar is an open-source, permissionless indexer that allows anyone to access EigenLayer’s protocol rewards in real time. One of its main functions is to calculate the rewards distributed to stakers and operators by AVSs.