Two high-profile Ethereum researchers, Justin Drake and Dankrad Feist, have stepped down from their advisory roles at EigenLayer, a restaking platform.
The announcement came today on X, as both researchers cited their desire to focus entirely on the Ethereum base layer. Drake had already left the position in September but made his exit public today. He said:
“I want to apologize to the Ethereum community and EF [Ethereum Foundation] colleagues for the drama I caused.”
He admitted the advisory role was a “bad move.” Feist added that while EigenLayer remains a valuable project, Ethereum demands his full attention.
Tensions over conflict of interest and token compensation
The trouble started back in May when it was revealed that both researchers were advising EigenLayer, which ranks among the top three DeFi projects on Ethereum by Total Value Locked (TVL), according to DefiLlama.
EigenLayer’s success had caused concerns about the impartiality of Ethereum’s core contributors, especially given the hefty compensation packages for advisors. Drake’s contract reportedly included “millions of dollars of tokens vesting over three years.”
Aya Miyaguchi, the Ethereum Foundation’s executive director, responded to the public backlash by promising to implement a conflict-of-interest policy. In a May post on X, she said:
“It is clear that relying on culture and individual judgment has not been sufficient, and we have been working on a formal policy to address this problem for a while now.”
Miyaguchi indicated the policy would be fast-tracked to prevent similar issues. While a formal policy has yet to materialize, Drake hinted at changes in his own approach. He pledged to avoid future advisorships, investments, and participation in security councils, explaining:
“This personal policy goes above and beyond the recent EF-wide conflict of interest policy… because I want to signal commitment to neutrality.”
EigenLayer’s token airdrop and ongoing security issues
EigenLayer has been making headlines for other reasons lately, launching its Season 2 “stakedrop” campaign, a massive airdrop of 86 million EIGEN tokens, around 5.1% of its total supply. The airdrop breaks down into three primary allocations:
- Stakers and Operators: Receiving 70 million tokens, the largest share, reserved for users who actively stake and operate within the platform.
- Ecosystem Partners: 10 million tokens are designated for partnering protocols, including liquid staking networks.
- Community Members: 6 million tokens set aside for early advocates and contributors.
EigenLayer captured the airdrop snapshot on August 15, with claims opening on September 17. But the platform has been in plenty of security troubles. In October, it saw an unauthorized sale of 1.67 million EIGEN tokens, valued at roughly $3.3 each.
This sale raised immediate questions about violations of EigenLayer’s lockup policy, which bars current and former employees from selling or staking tokens before September 2025. The wallet used in the sale was linked to EigenLayer’s Gnosis Safe, which adds to the confusion surrounding internal controls.
This has led EigenLayer to reexamine its security measures and address weak points in its compliance protocols. On October 18, a security breach led to the theft of approximately $5.7 million.
An attacker used address spoofing to mimic an investor, bypassing security to siphon funds. In response, EigenLayer has been reviewing and tightening its security protocols, hoping to fend off future breaches.
The token unlocked on October 1, instantly climbing into the top 100 cryptocurrencies by market cap. EIGEN’s fully diluted valuation surged to around $7.2 billion, with the token trading at approximately $3.59.
But the unauthorized sales and hacking incidents have made the market skittish. Price swings and uncertainty dominate trading, fueled by questions over the platform’s internal security and governance.
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