Content on this page was provided by the EGL team
EGL is a coordination token that holders use to vote on Ethereum's gas limit (block size) and incentivizes mining pools to follow their collaborative decision.
Content on this page was provided by the EGL team
The Ethereum Eagle project (EGL) is a community led effort focused on solving the misalignment of incentives and lack of transparency between the Ethereum community and miners in a way that maximizes value for all stakeholders. At present, miners solely decide gas limits and block sizes for the protocol, while Ethereum users, who are impacted by these decisions, have no voice. EGL introduces an on-chain coordination token “EGL” that allows the entire ETH ecosystem to vote on Ethereum’s gas limit and incentivizes Ethereum miners to follow the consensus gas limit, as decided by the community.
Users may participate in the Genesis event through CoinList or independently. CoinList will be participating in the first and last few transactions in the Genesis event. By doing so, CoinList participants will receive both the earliest unlocked EGL and the most bonus tokens.
The earliest contribution to Genesis will be unlocked first, while the last contribution to Genesis will receive the highest percentage of bonus EGL. CoinList will allocate users’ ETH contributions across the start and end of Genesis in accordance with CoinList’s Staking Transactions 1 and 2 (See Example: Genesis EGL, bonus voting EGL, and lock-up schedule, below), and users will receive pro-rata shares of the first contribution within six months and the remaining amount after one year.
Benefits of staking with CoinList include:
- Users can receive compounding token rewards as CoinList will continually re-vote to maximize rewards
CoinList will interact with the smart contract, abstracting away complexity from the end-user
- Users will not individually pay for ETH transaction fees to participate in Genesis or to vote their bonus EGL
- Users will be able to vote for their desired gas limit at registration. Users should note that, by registering through CoinList, they will be unable to change their gas limit vote until expiry of the lock-up period, and this may impact the amount of bonus EGL earned
- Participants can seamlessly stake ETH and receive EGL tokens without the need to interact with Balancer Pool Tokens (BPT)
Ethereum has two gas limits:
1. The individual gas limit which is required for every transaction and limits the total gas that a user is willing to pay to process a transaction.
2. The block gas limit which determines Ethereum’s block sizes and is determined by miners.
Unlike Bitcoin, Ethereum block sizes can grow or shrink over time in line with the gas limit. The higher the gas limit, the larger the potential block size and the more transactions a block can process. Higher gas limits and larger block sizes allow for more transactions per block. However, as gas limits and block sizes increase, there is an increased risk of the network desyncing where certain nodes and miners miss blocks when others miners are able to process them. In addition, with larger block sizes, fewer people may be able to run nodes or mine blocks due to increased computational costs. Thus, gas limits exist to curb centralization and to maintain network security and consensus.
Participants on Ethereum have competing desires. Users generally want larger block sizes, as high congestion paired with small blocks results in high fees. On the other hand, miners may want smaller block sizes because large blocks lead to less fees per transaction. Other developers and users may simply be concerned about the security of the network. Ultimately it is primarily the miners who currently determine the gas limit.
EGL has a limit on the voted on gas limit of +/- 4m from the current gas limit. As of July 22, 2021, the gas limit is 15M, meaning the possible ranges of voted on gas limits could be between 11M and 19M. Gas is denoted in Gwei, which is denominated in ETH, where each Gwei is equal to 0.000000001 ETH.
EGL aims to introduce a mechanism to give all stakeholders - not just miners - more agency in determining the optimal gas limit on the network, and coordinate miner activity by incentivizing their actions.
Ethereum Community Launch
While users and DApps may want lower fees, miners benefit from congestion caused by limited block sizes. Though miners may benefit from this model in the short term, higher transaction fees also limit overall network activity. In the long term, users and developers may drop out of the ETH network entirely in favor of other protocols with lower transaction costs.
Through EGL, the entire ETH community inclusive of users, DApp developers, core devs, and miners can all vote on their desired gas limit and reward miners for following the community guidance. When miners follow the gas limit of the EGL and ETH community, they earn EGL in addition to normal block rewards. EGL is both a coordination and reward mechanism.
To bootstrap the network, users lock ETH in the EGL Genesis contract. At the Genesis event, ETH contributions are matched with EGLs and deployed to an ETH-EGL pool on the Balancer protocol.
To highlight important voices in the ETH community that may serve as an information signal of what the community's desired gas limit ought to be, 50M EGLs are to be distributed to core devs, including client teams. This group is called EGL Signals.
Post genesis, EGL holders can vote on their desired gas limits to earn additional EGLs. Resulting Balancer pool tokens and EGLs will release between 10 to 52 weeks after Genesis based on time of participation (earlier participants release first, see the model for more details) and earn bonus EGLs for voting (later participants earn more bonus voting EGLs, see the model for more details). Bonus voting EGLs are locked until all Genesis tokens are released.
Voting EGL holders lock EGLs for 1-8 weeks to vote on desired gas limits. The vote must be within a +/- 4M range compared to the current gas limit. Votes are weight-averaged weekly, based on the amount and lockup. The desired gas limit is set to the weighted average, but is limited to 1M gas above/below the chain’s current limit per week. Voters receive additional EGL rewards by voting.
DAO 250m EGLs will be distributed as part of the Genesis event to the DAO with a minimum one-year lockup. The DAO is an EGL community-led decentralized autonomous organization governed by the fully functional Genesis contract. Through the DAO, all EGL holders will vote to support further development, perform security audits, and enable other improvements. Additional functionalities driven by the EGL community will be included in V2.
Miner Rewards Miners are able to earn EGLs when they produce a block with a gas limit within 1M gas of the limit voted by EGL holders. Miners can collect their rewards by including a transaction to sweep “earned” EGLs whenever they mine a block. EGL mining rewards increase depending on how closely the block’s gas limit matches the EGL holder’s desired gas limit.
Overview
Genesis is scheduled to begin on August 7, 2021 and last for approximately one week, or until the 25,000 ETH contribution cap is reached. To acquire EGL through the Genesis event, participants need to contribute and stake ETH to the Genesis contract and voting contracts.
750M EGL will be distributed to Genesis participants. Contributors will receive pro-rata shares of EGL based on how much ETH they contribute. As there is a fixed amount of EGL through Genesis, a higher total ETH contribution will result in a higher value per EGL but each contributor will receive less EGL per ETH. Post-Genesis, all contributed ETH are matched with EGL and staked in a 50/50 Balancer pool for the duration of the applicable lock-up.
ETH staked through Genesis is matched with EGL and bonus voting EGL. There are 750M EGLs available through Genesis along with 500M bonus voting EGL. Genesis participants with the longest lock-up earn the most bonus voting EGL.
CoinList participants will receive their pro-rata share of matched EGL and bonus voting EGL and follow the same lock-up schedule.
If you choose to participate through CoinList, you will have one option available to participate.
CoinList plans to stake 1,000 ETH in the first transaction of the EGL Genesis and up to 14,000 ETH as the last transactions in the Genesis event.
CoinList Transaction 1
= 1,000 ETH. Tokens are distributed to users once tokens fully unlock within 7 months after Genesis closes, assuming 25,000 ETH is staked.
CoinList Transaction 2
>= Up to 14,000 ETH. Tokens are distributed to users once tokens fully unlock after one year.
Example Genesis EGL, bonus voting EGL, and lock-up schedule
* Assumes all other other Genesis participants contributed in a single transaction. Individual participants will have their own distribution and lockup schedule.
** Table is only an example assuming that the Genesis contract receives the maximum contribution and CoinList participants stake the maximum available ETH. Actual results may vary significantly.
*** Users may receive fewer Genesis EGL at the Lockup End Date than is represented under Genesis EGL Allocated to Balancer.
CoinList will distribute earned rewards to individual users. All users who participate in the CoinList transaction will receive their pro-rata share of EGL tokens from both transactions once they are fully unlocked.
If you are participating outside of CoinList, more information on the lock-up schedule and bonus EGL can be found here, https://docs.egl.vote/.
Bonus Tokens Mechanics 500M EGL is earned as a bonus for voting for the desired gas limit. To claim bonus tokens, each wallet participating in Genesis must vote for their desired gas limit. Prior to contributing ETH through CoinList for Genesis, each contributor must vote for a gas limit. To claim the bonus EGL, post-Genesis, CoinList will facilitate voting in accordance with individual users’ preferred gas limits.
Voting Through CoinList CoinList will initially submit votes based on user preferences for the maximum period (8 weeks) to receive the highest possible voting rewards. After that, CoinList will continue to vote for the maximum period each week in order to compound the EGL voting rewards. Regardless of the timing of users’ contribution on CoinList or their desired gas limits, all CoinList participants in the Genesis event will receive their pro-rata share of all accumulated voting rewards earned by CoinList.
EGL is a coordination token that holders use to vote on Ethereum gas limits and incentivize mining pools to follow collaborative decisions. There are 4 billion tokens minted in total.
in millions*
Any ETH holder can stake ETH to the EGL Genesis contract to participate in the launch. There are unique benefits to participating through CoinList, but you may also participate directly via the Genesis contract.
| Asset | EGL |
| Contribution Period |
Contributions Open: July 27, 2021, 22:00 UTC
Contribution Close: August 11, 2021, 17:00 UTC Note:The Contribution Period will close upon the earlier of (1) CoinList reaches its 15,000 ETH Contribution Cap, or (2) the EGL Genesis Contract reaches its 25,000 ETH limit, including the CoinList Genesis contribution. |
| Genesis Dates |
Genesis Opens: August 7, 2021, 17:00 UTC
Genesis Closes: August 14, 2021, 17:00 UTC Note: The EGL Genesis will close early if the Genesis contract receives 25,000 ETH. |
| Initial Supply | 750M EGL |
| Funding Methods |
BTC, ETH, USDC, USDT
Users who participate with BTC, USDC, or USDT will have their assets converted into ETH at the time of contribution. |
| Post-Genesis Distribution |
After the applicable lock-ups, participants will receive their pro-rata share of ETH contribution, earned EGL, and bonus EGL tokens in their CoinList Wallet (less any fees), regardless of their contribution time or voting preference.
Note: Users may receive less or more ETH through the distribution than the initial contribution due to price movements between the EGL-ETH pair on Balancer. Users will not receive less in value than the initial ETH contribution. |
| CoinList Contribution Cap | CoinList will allocate up to 15,000 ETH to the Genesis contract. |
| CoinList Individual Contribution Limits |
Minimum Contribution: 0.05 ETH
Maximum Contribution: 100 ETH |
| CoinList Lock-up |
CoinList is participating in the first and last transactions in the Genesis event. CoinList will deploy 1,000 ETH in the first transaction and up to 14,000 ETH in the last transactions.
CoinList users will receive their pro-rata share of the staked EGL and ETH as the lockups expire. The first distribution is expected within 7 months after the Genesis closes, assuming 25,000 ETH is staked, and the second distribution will occur one year after Genesis closes. |
| Post-Genesis Voting & Staking | Participants can vote one of five gas limits through CoinList. Once the voting contract is deployed, CoinList will vote users’ staked EGL in accordance with these. |
| CoinList Fees | Upon distribution, CoinList’s fee will be 10% of EGL generated and 2% of ETH contributed taken at the time of the distribution. |
| Contribution Mechanism | Users arriving to the page get a first-come, first-served place in line after those in the queue. Note, users do not secure participation in Genesis until they complete funding of their ETH contribution. If the contribution cap is reached prior to completing funding, such users will not be allowed to participate. |
| Eligible Participants | Not available for residents and citizens of the United States, China, Canada, and certain jurisdictions. |
bloXroute, the team behind EGL has a demonstrated track record and is backed by top funds such as Coinbase Ventures, 1confirmation, Pantera, MetaStable, etc. The EGL smart contracts have gone through substantial audits by Halborn. Similarly, Balancer has a long track record of stability and performance and has been live since March 2020. Balancer has completed full audits with Consensys Diligence, Trail of Bits, and Open Zeppelin.