PANews reported on December 20th that the foundation behind the EigenLayer restaking protocol has proposed a governance change to introduce a new incentive mechanism for its EIGEN token and adjust the protocol's reward strategy to prioritize efficient network activity and fee generation. Under the plan, a newly formed incentive committee will be responsible for managing token issuance, prioritizing rewards for participants who ensure AVS security and expand the EigenCloud ecosystem. The proposal includes a fee model that returns AVS rewards and revenue from EigenCloud services to EIGEN holders, which could potentially create deflationary pressures as the ecosystem grows.

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Galaxy Digital’s head of research explains w