LayerZero requires Sybil airdrop farmers to inform themselves

LayerZero, a protocol that allows connections between incompatible blockchains, has given Sybil airdrop farmers the opportunity to self-report their addresses by May 17 in exchange for a reduced token allocation.

According to LayerZero, those who decide to show up will do so twitter.com/LayerZero_Labs/status/1786441554816532646″ target=”_blank” rel=”noopener nofollow noreferrer”>receive 15% of their planned allocation, while those who do not risk receiving “nothing” from the planned token airdrop.

Sybil airdrop farming refers to a seemingly deceptive practice in which people engage in Sybil attacks by creating multiple fake identities or accounts to exploit airdrop programs.

A Sybil attack is carried out when an individual creates numerous fake accounts to gain an unfair advantage, such as receiving more airdrop tokens than they are legitimately entitled to. This behavior has been considered unethical for undermining the perception of fairness and safety of airdrop programs, although it is still used as a method by many in space.

A LayerZero blog post details how the project plans to address the issue and implement it. sybil filtering methods Systems used to detect mercenary airdrop agricultural activities are implemented.

In particular, some of the filtering parameters include minting worthless nfts and spamming low-value transactions across multiple blockchains to record activity.

Sybil activity, where users adopt tactics such as creating multiple addresses to increase their stake in an airdrop, is a major problem for crypto projects. This is particularly true when an airdrop is anticipated, as user activity often slows down once token distribution occurs, and mercenary farmers move their funds to projects that have not yet distributed tokens.

“We are giving all Sybil users the opportunity to self-report within the next 14 days in exchange for 15% of their intended allocation, no questions asked,” LayerZero stated in the x post.

LayerZero itself has seen a decline in user activity since announcing its airdrop snapshot. According to data from the protocol's onchain explorer, daily cross-chain transactions fell from around 300,000 on April 30, the day before the airdrop announcement, to around 150,000 currently, representing a drop of more than 50%.

To counter the massive outflow of users after the airdrop, some crypto projects have started adopting a multi-round token distribution process.

Protocols such as decentralized exchange Jupiter and ethereum recovery platform EigenLayer have chosen this approach. In this regard, speculation has arisen that LayerZero could do the same, as the team stated that the May 1 snapshot was the first from the airdrop, suggesting the possibility of future snapshots.