EIGEN Token in 2025: The Heart of the EigenLayer Ecosystem! 💖📊
In June 2025, the EIGEN token is the native utility and governance token of the EigenLayer protocol, playing a central role in its decentralized operation.
Governance: EIGEN holders have voting rights in the EigenLayer decentralized autonomous organization (DAO), shaping the future of the protocol, AVS parameters, and fund distribution.
Incentivizing AVS: AVS can use EIGEN to reward restakers for the services they provide, as well as to pay for services like EigenDA.
Dispute Resolution: EIGEN is used in the EigenLayer dispute resolution system, where validators vote on issues of misconduct, and their staked EIGEN can be slashed.
Slashing Mechanisms: EIGEN will be slashed if validators fail to fulfill their duties or act maliciously, ensuring economic security for AVS.
EIGEN is not just a means of exchange; it is a fundamental component that ensures incentive alignment and decentralized governance of the entire restaking ecosystem.