LayerZero, an influential player in the blockchain interoperability space, has introduced a brand new way of distributing tokens – altruism meets participation. For their ZRO token, the blockchain entity has decided to kick start an unorthodox airdrop claim process wherein people can donate directly towards the development community.
This new project will have users pay $0.10 in ZRO tokens to claim a new token. Acceptable forms of donation are USDC, USDT & *ETH*. This unique model, which essentially eschews the traditional sales-dependent model to create more of a community-based distribution method, is looking to raise up to $18.5 million. 100% of the proceeds for this go to Protocol Guild, an Ethereum developer collective.
LayerZero’s approach is to manage the ZRO token claims via “Proof-of-Donation ” which was launched on June 2oth until September 20th. Because developers are rooted at the very core of the blockchain ecosystem, LayerZero has chosen to donate through the claiming process and contribute towards supporting Ethereum developers that lay such value to our shared field.
Community Response and Broader Impact
While for the betterment of the community and continued innovation within the Ethereum ecosystem, an argument can be made that it has mixed response from the crypto-community. Many think of the compulsory donation as an aberration from the usual spirit of airdrops, which are commonly understood to be grafts rather than taxes.
These moves have raised the eyebrows of some leading members in the space; such as Yearn finance’s Banteg, who questions why an initiative like Protocol Guild receives any funding through this method for a cause similar to supporting arguably nearly all other projects in the aggregate data space.
Regardless of the criticisms, this move by LayerZero points to a larger pattern of incorporating charity as part of typical crypto operations, potentially becoming a model for how projects can give back to the wider ecosystem in their bid to reach those broader distribution goals.
Funds raised will have a substantial positive impact on Protocol Guild, with donations to be vested over four years, supporting the long term of Ethereum’s core developers.
ZRO Claim Is Live.https://t.co/BjBvTMRJjJSupported Chains: Ethereum, Arbitrum, Optimism, Base, Polygon, BNB Chain, and Avalanche. pic.twitter.com/k2Fv2UKMoB
— LayerZero Foundation (@LayerZero_Fndn) June 20, 2024
Forward-Looking Strategies
The move by LayerZero to demand a donation in order to claim tokens is a bold one, which is a first step in the alignment of crypto-economic activity with general good, community benefits. This is related to an evolution in the space from pure technical innovation to the consideration of the influence their work will have on those that live around them, as a result.
The foundation affirmed that around 85 million ZRO tokens (8.5% of all initial circulating supply) are claimable by authorized users. The move is one element of a multi-pronged approach to give 38.3% of ZRO tokens back to the community with an extensive percentage allocated for planned future initiatives.
