IS EIGENLAYER'S ECONOMIC MODEL BROKEN?

Summary from the TLDR Crypto newsletter

EigenLayer's economic model is fundamentally flawed, particularly in how it bootstraps new decentralized infrastructure protocols. It effectively requires AVSs to forfeit token utility and revenue to restakers, hurting a protocol's ability to grow and sustain an ecosystem. Its pivot towards supporting AVS tokens as restaked assets is an acknowledgment of its “broken” core economic model. EigenLayer will likely remain a subsidized yield farm for ETH stakers.