Token

LayerZero

Foundation

zkSync

This week, another airdrop controversy has sent the crypto community into havoc. Omnichain interoperability protocol LayerZero recently announced its ZRO Token launch alongside an Airdrop for its community. 
However, investors were shocked when the protocol announced the new ‘Proof-of-Donation’ mechanism. The token’s price has dropped over 20% after launching.&nbsp; 
<h2 class="p1" id="layerzero-faces-backlash-for-token-airdrop">LayerZero Faces Backlash For Token Airdrop&nbsp;</h2> 
On June 14, the LayerZero Foundation took X to <a href="https://x.com/layerzero_fndn/status/1801657112734450168?s=61&amp;t=mtZSN0o6iCY-w9O1_1dRoQ" target="_blank" rel="noopener nofollow">tease</a> an upcoming airdrop. That day, Bryan Pellegrino, the co-founder and CEO of LayerZero Labs, shared the key details of the airdrop. 
The CEO revealed a 1 billion ZRO tokens supply and the community would directly receive 23.8% of them. He explained that 8.5% of the community-allocated tokens would be distributed on the first day, while the rest would be given throughout the following 36 months. 
In May, the <a href="https://www.newsbtc.com/news/layerzero-significant-milestone-airdrop/" target="_blank" rel="noopener ">protocol</a> announced its anti-Sybil measures for the upcoming token distribution. The measures include a self-reporting system for Sybil accounts, which offered 15% of the intended allocation to the addresses that report itself. Additionally, LayerZero created a bounty hunter program. 
Despite this, the protocol received some backlash for its distribution. Some users believe an 8.5% distribution on the first day was too low. Others felt like their <a href="https://x.com/darkcryptolord/status/1803301071164686681?s=61&amp;t=mtZSN0o6iCY-w9O1_1dRoQ" target="_blank" rel="noopener nofollow">allocated tokens</a> didn’t match their transaction volume. 
An x user shared he received 39.28 ZRO despite being among the top 0.13% LazerZero users. As a result, many compared the ZRO airdrop to zkSync’s one. &nbsp; 
Last week, the crypto community <a href="https://www.newsbtc.com/news/zksync-zk-drops-20-amid-binance-listing-and-new-token-distribution-program/" target="_blank" rel="noopener ">slammed</a> Ethereum’s Zero-Knowledge Layer-2 scaling solution zkSync ahead of its ZK token airdrop. At the time, investors expressed frustration with the token allocation and lack of anti-Sybil filtering. 
<h2 class="p1" id="from-hero-to-zro">From Hero To ZRO?&nbsp;</h2> 
Despite the comparison to zkSync, it wasn’t until Thursday that the backlash intensified. Before the airdrop, LayerZero Foundation announced its new claiming mechanism, ‘ Proof-of-Donation.’ 
<img loading="lazy" decoding="async" class="size-large wp-image-625722" src="https://www.newsbtc.com/wp-content/uploads/2024/06/IMG_3530.jpeg?w=860&amp;resize=860%2C667" alt="LayerZero" width="860" height="667" srcset="https://www.newsbtc.com/wp-content/uploads/2024/06/IMG_3530.jpeg?w=1431 1431w, https://www.newsbtc.com/wp-content/uploads/2024/06/IMG_3530.jpeg?w=460 460w, https://www.newsbtc.com/wp-content/uploads/2024/06/IMG_3530.jpeg?w=768 768w, https://www.newsbtc.com/wp-content/uploads/2024/06/IMG_3530.jpeg?w=860&amp;resize=860%2C667 860w, https://www.newsbtc.com/wp-content/uploads/2024/06/IMG_3530.jpeg?w=750 750w, https://www.newsbtc.com/wp-content/uploads/2024/06/IMG_3530.jpeg?w=1140 1140w" sizes="(max-width: 860px) 100vw, 860px" data-recalc-dims="1"> 
Per the post, users must donate $0.1 in USDC, USDT, or <a href="https://www.newsbtc.com/news/ethereum/ethereum-at-a-crossroads-big-move-coming-after-consolidation-phase/" target="_blank" rel="noopener ">ETH</a> per token to claim their ZRO allocation. The donations will go directly to the Protocol Guild, a collective funding mechanism for Ethereum developers. 
LayerZero Foundation estimated that the new mechanism will generate up to $18.5 million in donations. Additionally, it offered to match all donations up to $10 million. 
The protocol’s community quickly expressed their disagreement with the news. &nbsp;One user <a href="https://x.com/rektfencer/status/1803744118088032391?s=61&amp;t=mtZSN0o6iCY-w9O1_1dRoQ" target="_blank" rel="noopener nofollow">called</a> it a “Pay to Claim” airdrop, stating that “if there was a ‘milking your users’ Olympics, LayerZero would take the gold.” 
Another user found the <a href="https://x.com/patrykosweb3/status/1803744696084086877?s=61&amp;t=mtZSN0o6iCY-w9O1_1dRoQ" target="_blank" rel="noopener nofollow">timing</a> disingenuous, as the announcement was made soon before the airdrop. Many investors saw the “mandatory” nature of the donation as a slap in the face. Moreover, some consider the new claiming mechanism a “tax” instead of a donation. 
Pellegrino <a href="https://x.com/primordialaa/status/1803786065993449841?s=61&amp;t=mtZSN0o6iCY-w9O1_1dRoQ" target="_blank" rel="noopener nofollow">addressed</a> the criticism of X, stating that nobody is forced to donate. He added that users are not entitled to the tokens: 
<blockquote> 
 If you don’t want to donate… simply don’t claim. This is not something you own, it’s something being offered. 
</blockquote> 
As of this writing, ZRO has gone from $4.79 to $3.39, representing a 22% drop in four hours. 
<img loading="lazy" decoding="async" class="size-large wp-image-625712" src="https://www.newsbtc.com/wp-content/uploads/2024/06/IMG_3537.png?w=860&amp;resize=860%2C546" alt="LayerZero, ETH, ETHUSDT, ZRO" width="860" height="546" srcset="https://www.newsbtc.com/wp-content/uploads/2024/06/IMG_3537.png?w=1484 1484w, https://www.newsbtc.com/wp-content/uploads/2024/06/IMG_3537.png?w=460 460w, https://www.newsbtc.com/wp-content/uploads/2024/06/IMG_3537.png?w=768 768w, https://www.newsbtc.com/wp-content/uploads/2024/06/IMG_3537.png?w=860&amp;resize=860%2C546 860w, https://www.newsbtc.com/wp-content/uploads/2024/06/IMG_3537.png?w=750 750w, https://www.newsbtc.com/wp-content/uploads/2024/06/IMG_3537.png?w=1140 1140w" sizes="(max-width: 860px) 100vw, 860px" data-recalc-dims="1">

LayerZero’s ZRO Token Airdrop Receives Backlash For ‘Proof-Of-Donation’ Mechanism

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