Cross-chain interoperability protocol LayerZero’s native token ZRO was officially launched yesterday evening (20th) and open for airdrop applications. It is the first to introduce a claim mechanism called “Proof of Donation”, which requires users to make a donation in order to receive airdrops. However, It is not a "free donation", but a clearly marked price. Users "donate 10 cents for every ZRO they receive."
According to LayerZero, if users want to receive the token airdrop, they must donate USD 0.10 USDC, USDT or Ethereum for each ZRO. Each person’s small donation adds up to a big sum, and it is estimated that it will eventually be able to contribute to Ethereum developers. The collective financing mechanism Protocol Guild donated up to US$18.5 million.
Today LayerZero is introducing a new claiming mechanism called Proof-of-Donation, which will result in ~$18.5 million donated to @ProtocolGuild, a collective funding mechanism for Ethereum developers.
Protocol Guild and Ethereum's core developers have been fundamental to… pic.twitter.com/YPN7wzsqbJ
— LayerZero Foundation (@LayerZero_Fndn) June 20, 2024
Although cryptocurrency donation activities are quite common and popular in the currency circle, there is usually no hard and fast rule about "donating", and it is unprecedented to use it as a condition for receiving airdrops. In this regard, although some users believe that "doing charity is harmless," others do not understand "why they should be forced to donate in the name of morality."
In response to the controversy caused by "forced donations", LayerZero Labs co-founder and CEO Bryan Pellegrino also posted a response on the social platform X, explaining in detail the "donation certificate" mechanism and the logic behind it.
Bryan Pellegrino said that cryptocurrency airdrops have deviated from the original intention. Excessive speculation has led to users constantly using the protocol just to obtain more free tokens, lacking long-term protocol fit and loyalty.
He further pointed out that LayerZero was highly consistent with the community in 2022, but with the emergence of large-scale airdrops from other projects in 2023, users are also full of expectations for LayerZero’s airdrops. Although LayerZero did not have an airdrop plan at the beginning, the market’s Speculation has led to a surge in protocol usage, leading to "enormous pressure" and "exaggerated expectations."
Bryan Pellegrino then emphasized that in order to avoid short-term speculation, LayerZero chose the "donation certificate" method, hoping that users can support groups that really need help through small donations and enhance the value alignment with the protocol.
Although Bryan Pellegrino eloquently posted a long article to explain the rationality of the "Donation Certificate", some netizens later said bluntly "I would rather LayerZero not issue airdrops" and raised a thought-provoking question: "Why not just start with Just make it clear that you won’t send airdrops?”
〈LayerZero is the first to “donate to receive airdrops”! Netizens complained: Moral kidnapping, I would rather not have airdrops> This article was first published on "Block Guest".
