2024

LayerZero

zkSync

zkSync, a scaling solution for Ethereum, recently sparked controversy due to concerns over its ZK token airdrop’s vulnerability to Sybil attacks, potentially leading to unfair distribution and market instability. 
The airdrop of <a href="https://www.cryptotimes.io/2024/06/11/zksync-to-airdrop-nearly-3-68-billion-of-zk-tokens-next-week/" target="_blank" rel="noreferrer noopener">nearly 3.68 billion ZK tokens</a> aims to distribute 17.5% of the token’s total supply among 695,232 eligible wallets, with a cap of 100,000 tokens per wallet. To qualify, users must meet certain criteria, such as interacting with smart contracts, trading ERC-20 tokens, or participating in decentralized finance (DeFi) protocols. 
However, critics like Adam Cochran from Cinneamhain Ventures argue that the criteria are too easy to meet for “farmers,” who could use scripts and bots to automate the process, while regular users might not fulfill the requirements as thoroughly. 
Sybil Horror 6, a Sybil-tracking account, estimates that 135 million ZK tokens could be claimed by wallets engaging in Sybil attacks. Mudit Gupta, Polygon’s information security chief, also criticized the airdrop, calling it highly susceptible to farming due to the lack of Sybil filtering. 
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 135,000,000 ZK for all sybils from the initial LZ Sybils list. I hope ZkSync fixes their eligibility list and disqualifies sybils from it. And say thank you to LayerZero Lab and Brian for their sybil hunting initiative.<a href="https://t.co/RCEa6geO3c" target="_blank">https://t.co/RCEa6geO3c</a> <a href="https://t.co/rhIt3hjNDP" target="_blank">pic.twitter.com/rhIt3hjNDP</a>— Sybil Horror 6 (@SybilHorror6) <a href="https://twitter.com/SybilHorror6/status/1800566178496368831?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">June 11, 2024</a>
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Even though analytics firm Nansen did not perform anti-Sybil checks or advise on the airdrop allocation, it alerted zkSync about specific wallet segments, including whales and known scammers. However, some users criticized Nansen for not being diligent enough. 
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 What a cop-out from both parties <a href="https://twitter.com/zksync?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">@zksync</a> and <a href="https://twitter.com/nansen_ai?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">@nansen_ai</a> . Everyone knows you had this information at your fingertips and you expect people to believe you chose not to act on it because that was otherwise part of some proper procedure? Absolutely shameless. <a href="https://t.co/qCdWT75YHT" target="_blank">https://t.co/qCdWT75YHT</a>— Borrowed Thots (@To_the_moon2021) <a href="https://twitter.com/To_the_moon2021/status/1800594421861191951?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">June 11, 2024</a>
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Interestingly, zkSync acknowledged in its airdrop announcement that it deliberately chose not to implement strict Sybil criteria, arguing that such measures often exclude genuine users through arbitrary filters. 
In essence, the zkSync ZK token airdrop has raised concerns about the fairness and security of the distribution process, with critics highlighting the ease of exploitation by farmers and the potential concentration of tokens in the hands of a few. 
Despite the controversy, zkSync maintains its stance on avoiding strict Sybil detection to preserve inclusivity among users. 
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow"> 
 Also Read: <a href="https://www.cryptotimes.io/2024/06/10/zknation-launches-governance-hub-for-zksync-protocol/" target="_blank" rel="noreferrer noopener">ZKNation Launches Governance Hub for ZKsync Protocol</a> 
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zkSync Airdrop Faces Backlash Over Lack of Sybil Defenses

The Crypto Times

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