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Author: Ciaran Lyons, CoinTelegraph; Compiled by: Tao Zhu, Bitchain Vision
Cross-chain interoperability protocol LayerZero The newly launched token LayerZero (ZRO) fell 17% a day after its launch as its founders defended the controversial donation standards for collecting tokens, which some compared to “tax”.
Some people disagree and believe that the mechanism may be the right step to solve the problem of plaguing recent token airdrops.
After launching on June 20,ZRO soared 15.15% to $4.71 in just 20 minutes and then plummeted 22% in two hours, a pattern that is often seen in token airdrops as people sell out newly acquired tokens.
In this case, the launch of ZRO also brought its own unique controversy.LayerZero has done this, so users who want to receive the token need to donate a small amount of money to each ZRO token.
Source: LayerZero Foundation
“To receive a ZRO, users must donate $0.10 USDC, USDT or native ETH to each ZRO. This small donation will be directly donated to the Association of Agreements.”LayerZero wrote in a June 20 post.
LayerZero predicts,The donations will be donated approximately $18.5 million to Protocol Guild, a collective financing mechanism for Ethereum developers.
The move has been strongly opposed by the crypto community, as users believe that “taxes” have to be paid to change the nature of “airdrops” to more like an initial coin offering (ICO).
Users flocked to LayerZero’s posts with comments including “Is this a joke” and “How much are you paying for it”.
LayerZero confirms that ZRO launch is “not airdrop”
LayerZero insists that the recent launch is “not an airdrop.”
In a statement on June 20,LayerZero believes airdrops no longer help achieve “the goal of fair distribution, community building and protocol health, which was originally intended to address”.
This is mainly due to the increase in airdrop mining and Sybil entities (referring to entities that create and use large amounts of wallets to do airdrops), and token recipients have “little had any interest” in the long-term success of the project.
LayerZero co-founder Bryan Pellegrino seems to have been defending the token release all day long, reiterating that no one is entitled to the token and that users should avoid receiving tokens if they don’t want to donate.
“There is no mandatory donation, if you don’t want to donate… don’t ask for it. It’s not something you have, it’s something you are offered,”He said.
ZRO briefly hit a $4.7 high before falling below $3.50.Source: CoinMarketCap
“It’s such an unreal day, I’ve never been so tired in my life. Go into an unknown sleep time after closing the notification. May everything go well,” Pellegrino added.
at the same time,Some members of the cryptocurrency community agree that ZRO’s donation collection mechanism could be a step in the right direction for airdrops in the future.
“The people who complain about the LayerZero airdrop donation are stupid,” Adam Cochran said in a June 20 post, explaining that the donation will be used to support “a larger ecosystem” and “set basic cost values for the project.”a great way to do it.”
“This is a great way to increase the cost of witch operations, making it unlikely for them to engage in witch attacks in the future,”He explained.
Last week, ZkSync noted that during the launch of the June 17 airdrop, there are still some Sybil wallets that are able to bypass the system despite the use of “explicit” Sybil detection and “unique airdrop designs” to ensure the maximum number of organic users.
“While people scoff at ZRO airdrops, I want to praise it because the claim page UI/UX is very clean and the smoothest I’ve ever seen so far. Just like Spotify Wrapped,” adds Irys developer Connor King.
According to CoinMarketCap data, ZRO is currently trading at $3.35, down 17% in the past 24 hours.
