According to Cointelegraph: Following its launch on June 20, the LayerZero (ZRO) token surged 15.15% in 20 minutes, then plunged 22% amid debate over whether its donation mechanism is a stroke of genius or just an excuse for a "tax."

LayerZero (ZRO), the new token launched by cross-chain interoperability protocol LayerZero, has fallen 17% since its launch, a drop that has sparked controversy because claiming the token requires a donation, which some see as a "tax."

Some disagree with this criticism, arguing that this mechanism could be a good solution to the recent token airdrop problem.

On June 20, ZRO surged 15.15% to $4.71 in 20 minutes, then plunged 22% in two hours, a pattern that is often seen in token airdrops as claimers dump their newly acquired tokens.

In this case, the launch of ZRO brought its own unique controversy. LayerZero stipulates that users who want to claim the token must donate a small amount of US dollars for each ZRO token.

LayerZero said the donations will result in around $18.5 million being donated to the Protocol Guild, the collective funding mechanism for Ethereum developers.

The move has been met with backlash from the crypto community, with users arguing that having to pay a “tax” would change

LayerZero has been adamant that the recent launch is “not an airdrop.”

LayerZero argued in a June 20 statement that airdrops no longer contribute to the “fair distribution, community building, and protocol health goals that were originally introduced.”

This is largely due to token recipients having “little to no interest in the long-term success of the project,” as well as an increase in the number of mining and claiming entities targeting airdrops.

LayerZero co-founder Bryan Pellegrino seemed to defend the token launch throughout the day, reiterating that no one is entitled to the tokens and that users should give up claiming them if they don’t want to donate.

He said: "There is no forced donation, if you don't want to donate... don't ask for it. It's not something you own, it's something that is provided."

Meanwhile, some members of the crypto community believe that ZRO's donation request mechanism may be a right direction for future airdrops. Some believe that this can increase the cost of Sybil entities and set a base value for the token.

ZRO is currently trading at $3.35, down 17% in the past 24 hours