Fish

DeFi

LayerZero

LayerZero Labs recently introduced a solution to tackle sybil activity also known as “airdrop farming.” The omnichain interoperability protocol has developed a self-reporting mechanism as part of its cross-chain communication protocol.
<a href="https://docs.arbitrum.foundation/concepts/sybil-account" rel="noopener noreferrer nofollow">Sybil</a> farming involves making numerous fake accounts to unfairly obtain tokens or rewards. The developers want to make sure that the distribution of tokens benefits those who contribute positively to the network’s growth and sustainability, rather than those who exploit it through deceptive tactics like sybil farming.
On May 3, the protocol <a href="https://twitter.com/LayerZero_Labs/status/1786441554816532646" rel="noopener noreferrer nofollow">expressed on X </a>&nbsp;that it values authenticity and wants to ensure that the rewards go to genuine participants of their network.
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">
 We believe it is in the protocol's best interest to distribute tokens to durable users — not sybil farmers.
 If you are a sybil, you have two options:
 – Self-report sybil addresses for 15% of your intended allocation. No questions asked. The deadline to do so is May 17th.
 – Do… <a href="https://t.co/Kme9ZKckC7" rel="noopener noreferrer nofollow">pic.twitter.com/Kme9ZKckC7</a>
 — LayerZero Labs (@LayerZero_Labs) <a href="https://twitter.com/LayerZero_Labs/status/1786441554816532646?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">May 3, 2024</a>
</blockquote>
<h2 id="b-layerzero-to-fish-out-sybil-farmers-b">LayerZero To Fish out Sybil Farmers&nbsp;</h2>
When a user’s account is flagged as a Sybil, it means an algorithm has caught multiple wallet addresses just for airdrop farming. <a href="https://thedefiant.io/news/defi/optimism-sybil" rel="noopener noreferrer nofollow">According to The Defiant</a>, about 17,000 users missed out on the optimism token airdrop because they were labeled as Sybil accounts and a total of $18,620,000 in tokens were lost.
The cross-chain protocol has taken a proactive step to tackle the negative effects of airdrop farming in its ecosystem by incentivizing users that voluntarily self-report their involvement with such activities.
By self-reporting within a specific 14-day timeframe, these users can receive a 15% incentive of their original token allocation without facing any further consequences or questions.
To self-report, users will need to connect a wallet linked to Sybil’s activity and sign a message to confirm ownership. It is a smart way to encourage accountability and discourage sybil activity fairly and transparently.
<h2 id="b-consequences-for-dishonesty-b">Consequences for Dishonesty&nbsp;</h2>
LayerZero Labs has set May 7 to be the deadline for self-reporting and penalties will be imposed on those who fail it. The first phase involves publicly identifying sybil users who did not come forward voluntarily, and the second phase allows community members to report suspected sybil activity.
The proposal came after the snapshot on May 1 for the token airdrop eligibility deadline. The team confirmed this in a graphic shared on X.
Airdrops are a popular strategy used by decentralized finance (DeFi) protocols to attract more users by giving them newly issued cryptocurrencies as rewards. In March, Laser-2, a project on the Ethereum network,&nbsp; introduced the first <a href="https://thecoinrise.com/the-laser2-first-decentralized-airdrop-of-200k/" rel="noopener noreferrer nofollow">DeFi Airdrop worth $200,000</a> for its everyday users and developers.
LayerZero Labs hinted at a token launch in early 2024, however, did not provide specifics about the airdrop. Its ZRO was the first Hyperp on HyperLiquid in September 2023.
The post <a href="https://thecoinrise.com/layerzero-teases-sybil-fighting-push-with-self-reporting-strategy/" rel="noopener noreferrer nofollow">LayerZero Teases Sybil Fighting Push with Self-Reporting Strategy</a> appeared first on <a href="https://thecoinrise.com" rel="noopener noreferrer nofollow">Latest News and Insights on Blockchain, Cryptocurrency, and Investing</a>.

LayerZero Teases Sybil Fighting Push with Self-Reporting Strategy

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