Introducing: Rewards v2
We are excited to announce the arrival of the Rewards v2 protocol upgrade on Mainnet. It is designed to bring greater flexibility, efficiency, and customization to rewards within the EigenLayer ecosystem. This upgrade is also the first EigenLayer Improvement Proposal (ELIP), ELIP-001: Rewards v2, using 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.
What
The Rewards v2 upgrade proposes an expansion to platform rewards functionalities introducing several powerful enhancements:
- Operator-Directed Rewards: AVSs can reward Operators based on performance or custom logic
- Variable Operator Fees: Operators can set their own fee rates per AVS, providing economic flexibility and attracting diverse participation
- Batch Rewards Claiming: Stakers and Operators can claim multiple rewards in a single transaction, reducing gas costs
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. More information on the Sidecar update here.
When
- Testnet Launch: Live on testnet as of December 14, 2024.
- Mainnet Launch: Upgrade is slated for execution by the Protocol Council on January 21st, 2025.
Why
Rewards v2 is an optional, lightweight addition to the rewards structures and contracts that address key rewards use-cases gathered through feedback from AVSs and operators following the release of the first iteration of Rewards.
With greater flexibility for AVSs, Operators, and stakers, Rewards v2 will be a crucial value driver for the Eigen Economy.
How
The upgrade is live today on the EigenLayer Holesky testnet. Protocol Council execution on Mainnet will occur on or around the 21st. Following Mainnet, the up-take of Rewards v2 will be tracked by indexing the events of rewards on-chain. This can help determine the success of this ELIP and track the improvements to the protocol.
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