10 Questions to LayerZero: Trading volume, contract deployment... How are the airdrop rules considered?

Original title: "Ten questions to LayerZero: How to handle wash transactions and how to calculate token incentives?" 》

Original author: Nan Zhi, Odaily Planet Daily

LayerZero’s witch review work is still in full swing. According to LayerZero co-creator Bryan Pellegrino’s previous announcement, the witch is expected to be announced before the end of June. Final list of addresses. Today, Bryan’s review and calculation methods for witch attacks and low-value transactions were answered one by one on the X platform. Odaily Planet Daily compiled the full text in QA form as follows.

Review Standards and Final Goals

Bryan Pellegrino Before answering user questions, he first defined what spam transactions are (Spam, referred to as low-value transactions in this article), and how to process and incentivize these transactions. , whose original text is as follows:

Here is how we currently think about qualifications from a broad perspective. The focus is obviously on real users, and the fairest, most widely distributed, highly consistent, most persistent users.

This is heavily inspired by the results of the witch process, and any real final definition will come directly from LayerZero, not me.

The initial number of wallets is 6 million, and the number of transactions in 3 million wallets is less than 5 times, then these wallets should be seriously considered. All transactions below $1.00 are dweighted by 80%, but are still calculated at 1/5 of normal transactions, as are all "worthless NFTs".

Here, the definition of worthless NFT is that the "market value" or "total transaction volume" is less than 0.00001 ETH. For example, gas drop type transactions are also counted as valid transactions.

Transactions are then normalized based on the specific protocol fees (rather than the fees of the underlying blockchain where the transactions are located). The minimum value of the processed data is the eligibility criteria, and there is also an upper limit. The final multiplier will be awarded based on early usage.

In general: eliminate witches, eliminate spam transactions, capped semi-linear rewards, reward early users, reward persistent users, reward all non-standard protocol interactions such as LP through RFP, etc.

(Odaily Note: RFP is a distribution protocol launched by LayerZero that allows each project to establish its own distribution criteria based on its overall token distribution. All projects with OApp, OFT or ONFT contracts on the mainnet are eligible Apply for RFP.)

QA Collection

Bryan Pellegrino answered some detailed questions one by one, and the key parts are summarized as follows:

Liquidity Provider Incentives

Q: Liquidity pools are important and they should be rewarded. If someone adds LP more than a week there's a 99% chance it's not Sybil.

A: Incentives for (Liquidity Provider) will be the responsibility of the RFP.

Definition and processing of worthless NFT

Q: I created an nft on Holograph last May and it cost me 0.003 eth. If it is counted as a valueless NFT, obviously it does not price. But I love the NFTs I create, and I was one of the first people to try L0 cross-chain NFTs.

A: These transactions were initiated to use our cross-chain system, and if it was easy to distinguish this from the millions of "worthless NFT" transactions, I would be happy to do so.

I hope Holograph rewards creators in the RFP. That’s why we developed an RFP process.

(Odaily Note: This answer means that this type of NFT is still a "low-value NFT" and is not within the scope of LayerZero's official direct airdrop. It can be incentivized through RFP at most.)

Gas Drop Calculation

Q: To be honest, you have integrated more than 50 chains, but 90% of the Refuel fees are less than 1 USD, the value of each tx is reduced by 80%, and you have punished many users.

A: I think this is a completely valid criticism, which is part of the reason I commented publicly. The original post was talking about Stargate and OFT transfers, and every witch cluster we reviewed had countless tx, ranging from $0.001 to $0.25. I don't know much about Gas Drop data, but we'll have to evaluate.

(Note: Gas Drop is Gas refuel, which usually replenishes Gas fees to other accounts at a low cost. The meaning of this section is that the Gas Refuel operation will be included in the incentive scope, but it will usually be calculated at a discount.)

Discount Calculation Method

Q: If I have about 130 Layerzero transactions, of which I have about 10 worthless NFT transactions, then is the 80% discount calculation for the entire address, or 10 worthless ones? Deals are partially discounted.

A: Only those 10 transactions, not all.

Definition of worthless NFT

A: Market value or total transaction value at snapshot time (lifetime traded value)

How to deal with the coexistence of worthless NFT and high protocol fees?

Q: If I spend a fee on a worthless NFT transfer, is the discount calculated?

For example I transferred 5 worthless NFTs and I paid a $50 fee to the protocol; is my fee now $10?

A: Valueless NFTs are 20% of normal transactions, so you can think of a $1 fee as now being worth $0.20 across the model.

What does weight reduction calculation mean?

Q: What does 80% dweight mean?

A: The fee value of 1 USD spent on a normal transaction is 1. If you send 0.01 USD back and forth across the chain, then each transaction Calculated as 0.01 × 20%.

How are LayerZero contract deployers incentivized?

A: Nearly 60,000 contracts deployed, this is what the RFP was built for and why there is dev stripping in the RFP process.

(Odaily Note: It means you must apply through RFP to receive incentives.)

Meaning of agreement fee

Q: If you bridge STG through stargate, there is no agreement fee?

A: There are no Stargate protocol fees, but there are LayerZero protocol fees (for DVN and Executors). That's what the fee is, not a fee from Stargate or other apps.

How to consider transaction volume?

Q: Isn’t trading volume an important part of all the previous discussions? Why removed?

A: Transaction volume is standard for a Stargate RFP or OFT, but from a LayerZero perspective, all messages are more or less equal. That’s why it costs exactly the same to send $100 or $100, 000, 000 OFT.

Q: Think about it, if we give the same value to transfers of $100 and $100, 000, 000, then even a transfer of $0.000001 should have the same weight because "all messages or More or less is equal."

A: Yes, in an ideal world of equal access, this would not be needed, especially when there are a ton of $0.001 - $0.20 type low value transactions just spinning around, and a ton just to generate tx worthless NFT transactions. I think anything that has a legitimate purpose should be considered normal trade, and anything that's "obviously" inorganic should be given less weight.

Conclusion

In a nutshell, NFT transactions with a transaction volume of less than 1 USD and a value of less than 0.00001 ETH will be regarded as low-value transactions (Spam), and the weight will be reduced to 20 when calculating incentives %, but does not affect the weight calculation of other normal transactions. Finally, semi-linear allocation (semi-linear with upper bound cap) is performed based on the protocol fee paid.

In addition, early users will receive additional incentives, and non-standard LayerZero transactions such as providing liquidity will be handled separately by the RFP.

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