The Eigen Foundation has proposed adjusting EIGEN token incentives to provide higher rewards for active users.

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.