Airdrop Drama Shocks LayerZero's ZRO Token Launch

Bittime - The drama surrounding the ZRO token airdrop from LayerZero reached its peak. LayerZero, a cross-blockchain communications and messaging protocol, launched their native token, $ZRO, last week.

With a total supply of 1 billion tokens, ZRO opened with a full market capitalization value (FDV) of IDR 16 trillion (4 billion US dollars). This happened before it had reached its highest point of IDR 18.8 trillion (4.7 billion US dollars).

However, since then the value has continued to decline and when this article was written, ZRO's FDV was around IDR 12 trillion (3 billion US dollars). This is on par with its competitor Wormhole ($W) which launched their token earlier this year.

Detail TGE Token ZRO

Details regarding the $ZRO token generation event (TGE) are as follows: 25% of tokens unlocked on Day 1, with 8.5% available immediately at TGE, 11.0% allocated for future snapshots and Request for Proposals (RFP), 5% is allocated to the LayerZero Foundation, and 0.5% is distributed to community members.

However, this airdrop did not run smoothly. A surprise in the claims process sparked heated debate, with pros and cons emerging regarding the protocol.

In a post before the claim was opened, LayerZero announced a new mechanism called "Proof-of-Donation". This mechanism requires claim participants to contribute US$0.1 (around Rp. 1,640) per token in USDC, USDT, or ETH to claim their airdrop.

The donation is intended for The Protocol Guild, an initiative designed to support contributors to the Ethereum core protocol by providing financial incentives and resources.

According to LayerZero, this mechanism will generate donations of up to IDR 296 billion (18.5 million US dollars) for Protocol Guild. LayerZero also announced plans to match the donation up to IDR 164 billion (10 million US dollars).

ZRO Token Airdrop Requirements Criticized

Some criticized the new requirements, commenting that the "mandatory donation" criteria felt contrary to the spirit of the airdrop. This should be a credit to both contributors and users of the protocol.

Others, on the other hand, praised the team's efforts in spearheading this initiative and raising substantial capital for the cause. To date, 57.5% of ZRO has been claimed.

This airdrop also marked the completion of a weeks-long sybil hunt led by LayerZero founder Bryan Pellegrino. Sybil is a term for using a protocol just to get as many airdrops as possible.

Pellegrino said that of the 6 million unique wallet addresses interacting with the LayerZero protocol, only 1.28 million were eligible for the airdrop.

As a refresher, the LayerZero airdrop attracted a lot of attention in recent weeks. Bryan and his team are working hard to hunt down thousands of industry airdrop sybils trying to maximize their airdrop allocation.

This type of user is not ideal for the protocol as they often withdraw their collateral and simply leave the protocol.

LayerZero worked with Nansen and Chaos Labs to identify this collection of sybil wallets. Initial analysis identified more than 800,000 addresses as potential sybils.

As a result of many sybils leaving the protocol, daily messages on LayerZero dropped 90% from 348,000 messages the day before the snapshot to just 31,000 on June 17, before climbing back to 300,000 towards the end of last week.

Most airdrops will continue to be distributed to users over the next 36 months with additional retroactive distributions occurring every 12 months, according to Pellegrino. It will be interesting to see whether this level of activity can be maintained in the coming months.

How To Buy Crypto With Bittime

You can buy and sell crypto assets in an easy and safe way via Bittime. Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti.

To be able to buy crypto assets on Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application.

Learn How to Buy Crypto on Bittime.

Monitor price chart movements of Bitcoin (BTC), Ethereum (ETH), Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.