Today, Scroll, an Ethereum Layer 2 blockchain, announced the distribution of 7% of its new $SCR token supply in its first airdrop. While the airdrop was anticipated, the structure of the distribution has sparked criticism from some members of the community.
In a Monday blog post, Scroll stated, “Our first airdrop fairly rewards key contributors within the Scroll ecosystem. The allocation of SCR tokens reflects the importance of participation, involvement, and community support.” The airdrop will distribute 5.5% of the total token supply, targeting over 570,000 wallets, including more than 600 open-source contributors, 115 technical contributors, over 100 zero-knowledge (ZK) researchers, and over 10 public goods organizations and data providers.
These recipients of the “community drop” will collectively receive 55 million SCR tokens, valued at approximately $77 million. Of this amount, 40 million tokens will be proportionally allocated among on-chain participants based on their accumulation of Scroll’s version of points, called “marks,” as of a snapshot taken on October 19, 2024.
The price of SCR tokens has risen by 6% following the announcement, trading at $1.40.
An additional 10 million tokens, representing 1% of the total supply, will be distributed under a “Flat Boost” program, designed to ensure all on-chain participants receive a meaningful share, regardless of how many marks they have collected.
Scroll, known for using zero-knowledge proofs to scale Ethereum, is among the last established Layer 2 networks to introduce a native token through an airdrop. However, despite the excitement, the design of the token distribution has drawn significant criticism from parts of the community.
### Criticism of Airdrop Design
Some users are unhappy with the airdrop’s structure, particularly the decision to allocate 5.5% of the tokens to Binance Launchpool. According to Andrew, a user going by the name “10 GWEI,” this move favored large Binance users, or “whales,” who were able to farm tokens with a two-day advantage. “Binance/BNB whales or any other whales just grabbed most of the tokens for themselves,” Andrew explained. He added that many of these recipients had no prior interaction with the Scroll network, raising concerns about a potential future token dump from these users.
“There are two categories of users — Binance users and Scroll users,” Andrew added, highlighting the divide in the token distribution process.
Another concern is the concentration of tokens among a small group of users. The top 10 wallets own more than 10% of all accrued marks, while the top 100 wallets collectively hold around 250 million marks, or approximately 30% of the total marks distributed so far. This has raised questions about the decentralization of the airdrop. “It's hard to call it decentralization when such a large share of the token supply falls into the hands of a few people,” Andrew remarked.
These sentiments were echoed by @katexbt, an online store operator on Scroll, who believes that the airdrop may disproportionately benefit Sybil farmers, or users running bots to game the system.
### Concerns Over Team Allocation
Further criticisms revolve around the tokenomics of the SCR token. With 23% of the total supply allocated to the team and 10% to fundraising, these tokens represent a value of $322 million at current prices. Andrew expressed frustration over the team’s significant allocation, arguing that there is no fair justification for such a large portion being reserved for the team in an airdrop meant to reward loyal users.
“I realize that making everyone or the majority happy is impossible in the current market conditions, but it’s worth trying not to leave them completely disappointed,” Andrew concluded.
### Conclusion
While Scroll’s airdrop was highly anticipated, its design has sparked concerns within the community. Issues related to token concentration, favoritism towards Binance users, and the large allocation reserved for the Scroll team have led some to question whether the airdrop truly aligns with the principles of decentralization and fair reward distribution. As the debate unfolds, the SCR token continues to trade at a heightened price, though its long-term impact remains to be seen.
**Disclaimer:** The Block is an independent media outlet that provides news, research, and data. As of November 2023, Foresight Ventures is a majority investor in The Block. Foresight Ventures invests in other crypto companies. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block remains committed to objective and independent reporting on the crypto industry.
