“ZRO claims are active” Source: LayerZero Foundation on x.
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Claims over LayerZero's new ZRO token x.com/LayerZero_Fndn/status/1803744985029788042″ target=”_blank” rel=”noopener nofollow noreferrer”>went live today, but the airdrop mechanic required a 10-cent donation for each token participants wished to receive. This initiative, announced through a post symbolic claims to donations directed to the Protocol Guild, with the goal of aligning long-term commitment to the LayerZero protocol.
LayerZero x.com/LayerZero_Fndn/status/1803742303204323494″ target=”_blank” rel=”noopener nofollow noreferrer”>emphasized the innovative aspect of this approach, saying that by donating, eligible recipients “show long-term alignment with the LayerZero protocol and a commitment to the future of cryptocurrencies.”
The foundation will match donations of up to $10 million, marking the first case of mandatory donation for airdrop claims in the crypto industry.
Reception from the crypto community has been mixed. Some users disapproved of the mandatory donation, while others appreciated the support for development. During the airdrop, 85 million ZRO tokens will be available for distribution, with over 50% reserved for primary investors and contributors based on a three-year vesting schedule.
Despite some dissatisfaction, LayerZero's ZRO token is highly anticipated and is trading at $4.27 in premarket futures. It is scheduled to launch on exchanges like Binance at noon UTC, although it appears the exchange has postponed this at 13:00 UTC.
The LayerZero airdrop eligibility checker, launched a day earlier, also drew criticism from DeFi users. Many expressed frustration over small allocations despite meaningful use of the protocol. The allocation process appeared to favor holders of specific nfts, such as Pudgy Penguins and Kanpai Pandas, over those with high transaction counts or Gh0stly Gh0sts nfts.
Approximately 1.28 million wallets are eligible for the airdrop, and 8.5% of the total 23.8% community allocation will be distributed initially. The remaining tokens will be distributed over the next three years through various incentives and rewards.
ZRO's pre-market valuation is $4.5, which equates to a fully diluted value of $4.5 billion. However, the state of airdrop farming is causing increasing frustration among users, with diminishing returns on investment and oversaturation of protocols.
eco.xyz Founder Cobie commented on these growing concerns, x.com/cobie/status/1803071393484939602″ target=”_blank” rel=”noopener nofollow noreferrer”>saying: “If you're a founder, in my opinion, you're probably thinking about not doing any airdrops these days; The disadvantages are much greater than the advantages now.”
LayerZero also received criticism when it required Sybil airdrop farmers to report themselves. Following this, LayerZero CEO Bryan Pellegrino confirmed that up to 100,000 wallets reported their Sybil activities.
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