staking rewards

The currently proposed Solana ETFs exclude staking rewards, with issuers following the precedent set by Ethereum ETFs

ChainCatcher news, Grayscale Investments and the New York Stock Exchange (NYSE) submitted the 19b-4 filing for a Solana ETF to the U.S. SEC yesterday. With Grayscale's involvement, the only major crypto ETF issuers that have not yet applied for a Solana ETF are BlackRock, Fidelity, ProShares, and Ark. Notably, none of these proposed Solana ETFs will provide staking rewards to investors.This is not voluntary. Solana ETF issuers followed the precedent set by Ethereum ETFs, excluding staking rewards to comply with SEC guidelines. The details of the dialogue between Ethereum ETF issuers and the SEC remain unclear. However, the SEC seems concerned that staking rewards could be classified as securities, as well as the potential forfeiture risks associated with staking ETH.Therefore, when they began applying for the Solana ETF, these institutions opted out of staking from the start. Nevertheless, the issuers have repeatedly insisted that despite the lack of staking rewards, gaining compliant exposure to Solana directly in brokerage accounts makes these products still attractive.However, for Solana, the opportunity cost of forgoing staking is much higher than for Ethereum. According to the Ethereum Foundation, the current staking annual yield for Ethereum is 3.4%. According to data from 21.co, the average staking annual yield for Solana over the past week is 11.4%. The staking rewards for SOL are not always that high, but even in the relatively sluggish month of August, its yield exceeded 8%.

EigenLayer has been criticized by community members for the staking rewards obtained by early investors being exempt from token lock-up restrictions

ChainCatcher news, according to CoinDesk, EigenLayer has faced criticism after it was revealed that early investors received staking rewards without the restrictions of token locks. Investors and community members have complained about the lack of transparency in the supply of EigenLayer tokens. The total supply of EIGEN is fixed at 1.68 billion, with a circulating supply of 186 million, an FDV of 5.8 billion dollars, and a market cap (excluding uncirculated tokens) of 650 million dollars. Many of the questions raised by community members stem from a portion of these locked tokens, which belong to early investors who purchased them in heavily discounted funding rounds.Investors who bought in EigenLayer's 14.4 million dollar seed round, 50 million dollar Series A round, and the latest 100 million dollar funding in February can now stake their locked tokens for rewards. Currently, a total of 130 million EIGEN tokens have been staked. Many believe these are part of the claimed tokens, but in reality, 70 million of those tokens belong to this small group of early investors. EigenLayer investor TardFiWhale.eth wrote on X that the project recently updated its documentation, stating that "Staking by Eigen Labs investors is unrestricted," and that rewards are not subject to lock-up restrictions. The X post claims that this information was not included in the archived documents from mid-September.After the launch of the EIGEN token, it initially rose to 4.39 dollars, then fell by more than 20% to 3.57 dollars.
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