Cross-chain interoperability protocol LayerZero just launched a new yield-bearing token LayerZero (ZRO) fell more than 20% a day after launch as its founder defended the controversial donation criteria for receiving the token, which some have likened to a “tax.”
Some people disagree and argue that this mechanism could be the right step to solve the problems plaguing recent token airdrops.
Upon launch on June 20, ZRO increased 15% to $4.71 within 20 minutes before falling 22% within two hours, a pattern commonly seen in token airdrops when recipients sell off New tokens received.
In this case, the launch of the ZRO came with its own unique controversy. LayerZero has asked users who want to receive tokens to donate a small amount for each ZRO token.
“To receive ZRO, users must donate $0.10 in USDC, USDT or ETH for each ZRO. This small donation will go directly to the Protocol Guild,” LayerZero wrote in a June 20 X post.
LayerZero forecasts that donations will result in approximately $18.5 million donated to the Protocol Guild, a collective funding mechanism for Ethereum developers.
The move was met with protests from the crypto community as users argued that having to pay a “tax” changes the nature of the “airdrop” to something akin to an initial coin offering ( ICO).
Users flocked to LayerZero's post with comments like “Is this a joke” and “how about you pay for that.”
LayerZero affirms that the launch of ZRO is “not an airdrop”
LayerZero was adamant that the recent launch was “not an airdrop.”
In a June 20 statement, LayerZero argued that airdrops no longer contribute to “the goals of equitable distribution, community building, and protocol health, for which airdrops were originally introduced.” to solve."
Primarily, this is because the token recipients have “little to no interest” in the long-term success of the project, due to the rise of farming airdrops and Sybil entities, which refer to entities that create and use multiple wallets to farm airdrops.
LayerZero co-founder Bryan Pellegrino seemingly spent the day defending the token launch, reiterating that no one has the right to receive the tokens and that if users don't want to donate, they should refuse to accept.
“There is no mandatory donation, if you don't want to donate… just don't accept. This is not something you own, but something that is provided,” he said.
“Today was unbelievable, the most tiring of my life. Going to sleep for who knows how long with notifications turned off. Good luck everyone,” Pellegrino added.
Meanwhile, some members of the crypto community agree that the donation mechanism to receive ZRO could be a right step for future airdrops.
“People complaining about donating during the LayerZero airdrop are stupid,” Adam Cochran stated in a June 20 X post, explaining that donations are used to support the “larger ecosystem.” and is a “good way to set a fundamental value for the token.”
“This is a good way to increase the cost of Sybil operations, making them less likely to Sybil in the future,” he explains.
Last week, ZkSync noted that during the airdrop on June 17, some Sybil wallets were able to bypass the system, despite using an “explicit” Sybil detection mechanism along with a “clear” design. unique airdrop” to ensure the highest number of actual users.
“While everyone is criticizing the ZRO airdrop, I want to give credit where credit is due – the UI/UX of the receiving page is the cleanest and smoothest I have ever seen. Like Spotify Wrapped,” added developer Irys Connor King.
ZRO price chart over the past 24 hours | Source: Coingecko
Currently, ZRO is trading at $3.49, down 21.6% over the past 24 hours, according to Coingecko data.
Source: https://tapchibitcoin.io/token-zro-giam-hon-20-giua-tranh-cai-ve-khong-phai-la-airdrop-cua-layerzero.html
