


Eigen Foundation has presented a governance proposal that includes new incentives for the EIGEN token. This proposal anticipates a change in the protocol's reward strategy to prioritize productive network activities and fee generation.
As part of the proposal, a newly formed Incentive Committee will manage token emissions. This committee will prioritize participants offering Actively Validated Services (AVS) and will encourage the expansion of the EigenCloud ecosystem.
The proposal includes a fee model where revenue from AVS rewards and EigenCloud services will be redirected to EIGEN holders. This situation has the potential to create deflationary pressures as the ecosystem grows.
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