The Airdrop token (ZRO) from LayerZero, which was not considered by Airdrop, triggered a new peak in Arbitrum's daily revenue.
LayerZero's launch of its token on June 20 led to a massive increase in fees on the Arbitrum network, resulting in a record daily revenue of $3.43 million for the blockchain, an increase of approximately 16,680% compared to the previous day.
LayerZero launched the ZRO token on Thursday, but has drawn criticism over its mandatory “donation” mechanism — which requires holders to spend a small amount of money per token to allocate it.
These mechanisms pushed the average gas fee on the blockchain network higher, to 89 cents, up from its typical fee of less than one cent.
This pushed its earnings for the day to $3.29 million, another record for the network, according to data from Dune Analytics and DefiLlama.
LayerZero has made it so that claimants of ZRO tokens must donate a small amount of money per token.
“To claim ZRO, users must donate $0.10 in native USDC, USDT, or ETH per ZRO token,” LayerZero wrote in a June 20 post. She also added that the donation goes to the Protocol Guild, which helps fund Ethereum developers.
LayerZero has argued that launching its token is “not an airdrop” because airdrops do not align with “the goals of equitable distribution, community building, and protocol health,” as many beneficiaries have “little or no interest” in the project in the long term.
It's Arbitrum's biggest revenue day since it generated $2.13 million in revenue on December 14, the day before it went offline due to an increase in network patterns.
Patterns are a type of data format that can hold larger packets of simple transaction data, such as images, which makes them expensive due to their size.
This cost is also passed on to Arbitrum, which made a profit of just $414,000 on December 14 as it was hit with higher fees for publishing and verifying expensive registration data on Ethereum.
Meanwhile, the ZRO token has deteriorated. It fell by 23% in the last day to $3.42, reaching its peak at $4.79, according to CoinGecko data.
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