I hope this example will make U understand how to configure this tricky command:

I would like to advertise a default route of 9.9.9.99 to every eigrp router:

First create a default static route with the classfull network U are
trying to advertise:

There are two methods for creating this static route:

One is using the
#ip default-network 9.9.9.9
command
Which will create a static route for you.

Another method is by creating the static route by yourself.

BB2#configure terminal
Enter configuration commands, one per line.  End with CNTL/Z.
BB2(config)#ip route 9.0.0.0 255.0.0.0  9.9.9.99
BB2(config)#end
BB2#sh
*Jun 22 21:42:42.851: %SYS-5-CONFIG_I: Configured from console by console
BB2#sh ip route
Codes: L - local, C - connected, S - static, R - RIP, M - mobile, B - BGP
     D - EIGRP, EX - EIGRP external, O - OSPF, IA - OSPF inter area
     N1 - OSPF NSSA external type 1, N2 - OSPF NSSA external type 2
     E1 - OSPF external type 1, E2 - OSPF external type 2
     i - IS-IS, su - IS-IS summary, L1 - IS-IS level-1, L2 - IS-IS level-2
     ia - IS-IS inter area, * - candidate default, U - per-user static route
     o - ODR, P - periodic downloaded static route, + - replicated route

Gateway of last resort is not set

    10.0.0.0/8 is variably subnetted, 4 subnets, 2 masks
C        10.0.0.0/24 is directly connected, FastEthernet0/0
L        10.0.0.1/32 is directly connected, FastEthernet0/0
C        10.10.10.0/24 is directly connected, FastEthernet0/0
L        10.10.10.1/32 is directly connected, FastEthernet0/0
BB2#

As U can see this static route is not in the routing table. Because we
don;t have a connected interface in this subnet. Now let;s add one:

BB2(config-if)#ip address 9.9.9.9
*Jun 22 21:44:41.251: %LINK-3-UPDOWN: Interface Loopback1, changed state to up
*Jun 22 21:44:42.251: %LINEPROTO-5-UPDOWN: Line protocol on Interface
Loopback1, changed state to up
BB2(config-if)#ip address 9.9.9.9 255.255.255.0
BB2(config-if)#end
BB2#
*Jun 22 21:44:48.771: %SYS-5-CONFIG_I: Configured from console by console
BB2#sh ip route
Codes: L - local, C - connected, S - static, R - RIP, M - mobile, B - BGP
     D - EIGRP, EX - EIGRP external, O - OSPF, IA - OSPF inter area
     N1 - OSPF NSSA external type 1, N2 - OSPF NSSA external type 2
     E1 - OSPF external type 1, E2 - OSPF external type 2
     i - IS-IS, su - IS-IS summary, L1 - IS-IS level-1, L2 - IS-IS level-2
     ia - IS-IS inter area, * - candidate default, U - per-user static route
     o - ODR, P - periodic downloaded static route, + - replicated route

Gateway of last resort is not set

    9.0.0.0/8 is variably subnetted, 3 subnets, 3 masks
S        9.0.0.0/8 [1/0] via 9.9.9.99
C        9.9.9.0/24 is directly connected, Loopback1
L        9.9.9.9/32 is directly connected, Loopback1

As U can see, now we have this static route in the routing table. Now
let;s mark this one as a candidate default route:
The following command will ONLY work if we have a static route in the
routing table
(created with another ip default-network command or with ip route command)
Why? Ask CISCO !

BB2(config)#ip default-network 9.0.0.0
BB2(config)#end
BB2#sh i
*Jun 22 21:46:03.119: %SYS-5-CONFIG_I: Configured from console by console
BB2#sh ip route
Codes: L - local, C - connected, S - static, R - RIP, M - mobile, B - BGP
     D - EIGRP, EX - EIGRP external, O - OSPF, IA - OSPF inter area
     N1 - OSPF NSSA external type 1, N2 - OSPF NSSA external type 2
     E1 - OSPF external type 1, E2 - OSPF external type 2
     i - IS-IS, su - IS-IS summary, L1 - IS-IS level-1, L2 - IS-IS level-2
     ia - IS-IS inter area, * - candidate default, U - per-user static route
     o - ODR, P - periodic downloaded static route, + - replicated route

Gateway of last resort is 9.9.9.99 to network 9.0.0.0

S*    0.0.0.0/0 [1/0] via 9.9.9.99
*    9.0.0.0/8 is variably subnetted, 3 subnets, 3 masks
S*       9.0.0.0/8 [1/0] via 9.9.9.99
C        9.9.9.0/24 is directly connected, Loopback1
L        9.9.9.9/32 is directly connected, Loopback1

Now this route is a default route for us, let;s make a check on eigrp
neighbor BB1:

BB1#sh ip route
Codes: L - local, C - connected, S - static, R - RIP, M - mobile, B - BGP
     D - EIGRP, EX - EIGRP external, O - OSPF, IA - OSPF inter area
     N1 - OSPF NSSA external type 1, N2 - OSPF NSSA external type 2
     E1 - OSPF external type 1, E2 - OSPF external type 2
     i - IS-IS, su - IS-IS summary, L1 - IS-IS level-1, L2 - IS-IS level-2
     ia - IS-IS inter area, * - candidate default, U - per-user static route
     o - ODR, P - periodic downloaded static route, + - replicated route

Gateway of last resort is not set

    10.0.0.0/8 is variably subnetted, 3 subnets, 2 masks
C        10.0.0.0/24 is directly connected, FastEthernet0/0
L        10.0.0.2/32 is directly connected, FastEthernet0/0
D        10.10.10.0/24 [90/30720] via 10.0.0.1, 00:54:29, FastEthernet0/0

This router is not having a default candidate yet.
For this to happen, we need to advertise this static route from BB2,
which is a default candidate for BB2 only now, into eigrp, using
redistribute static:

BB2(config)#router eigrp 1
BB2(config-router)#redistribute static

And now let's check the routing table on BB1:

BB1#sh ip route
Codes: L - local, C - connected, S - static, R - RIP, M - mobile, B - BGP
     D - EIGRP, EX - EIGRP external, O - OSPF, IA - OSPF inter area
     N1 - OSPF NSSA external type 1, N2 - OSPF NSSA external type 2
     E1 - OSPF external type 1, E2 - OSPF external type 2
     i - IS-IS, su - IS-IS summary, L1 - IS-IS level-1, L2 - IS-IS level-2
     ia - IS-IS inter area, * - candidate default, U - per-user static route
     o - ODR, P - periodic downloaded static route, + - replicated route

Gateway of last resort is not set

D*EX  9.0.0.0/8 [170/156160] via 10.0.0.1, 00:01:04, FastEthernet0/0

Voila, this route is here, marked as a default candidate route.

Hope this clarified everything about the usage of this command.
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