LayerZero’s airdrop causes another stir. Will the existing token distribution model be eliminated?

Author: Luccy, Block Rhythm

The witch purge activity that has been going on for more than a month has finally ended. The LayerZero Foundation announced today on Blank investment qualification query page, but the results can still be described as "stingy".

As one of the potential airdrop projects with the highest expectations in the community, LayerZero’s airdrop was expected to be “big is coming.” However, as the witch purge activities progressed, a large number of studios and even retail accounts were The account was reported as a witch, and after working hard for half a year, it was finally wiped out.

Related reading: "LayerZero's currency is about to be released. What comes before the airdrop is the largest "witch purge" in history? 》

According to a previous report released by LayerZero, 800,000 addresses are potential witch accounts. As of now, LayerZero Labs CEO Bryan Pellegrino said at

On the airdrop application page posted by the community, some of the top 5% qualified users can only receive more than 200 ZRO tokens, which are worth about 600u based on off-site 3u. Bryan Pellegrino also said that the airdrop will be received on the main network, which means that the already meager airdrop income will need to deduct gas costs.

LayerZero is also causing a "rat warehouse" incident?

However, when most users were sarcastic and sarcastic, there were still users who said they were eligible to receive tens of thousands of ZRO, and most of these people held Kanpai Pandas NFTs.

Currently, ZRO’s token economic distribution rules are only the version originally announced by Bryan Pellegrino, that is, the total supply of $ZRO is 1 billion, and 23.8% is airdropped to the community and developers, of which 8.5% The tokens will be circulated on the first day, with 5% allocated to official bridge users, 3% allocated to RFP projects (i.e. ecological users), and 0.5% allocated to the community pool. The majority of the remainder will be distributed over the next 36 months, with additional retroactive distributions every 12 months.

This means that of the 238 million $ZRO airdropped, 20.23 million were circulated on the first day of listing. Bryan Pellegrino stated in the community that Stargate ecological users received a total of 10 million ZRO airdrops, and Pudgy Penguins and Kanpai Pandas each received 1 million airdrops. All projects in the RFP allocate airdrops to their respective communities according to their own wishes.

Among them, one address received a total of 5,335.55 ZRO airdrops for holding 50 Kanpai Pandas NFTs, and another address starting with 0x816 received 10,000 for holding 152 NFTs. ZRO. On average, an NFT earns approximately 100 ZRO, adjusted based on the rarity of the NFT itself.

Since Kanpai Pandas is not a very famous project, this also triggered the suspicion of "rat warehouse". However, according to nftgo data, there is no obvious correlation between the high trading volume of Kanpai Pandas and the snapshot time of LayerZero airdrop, and its official push has also been operating well. Therefore, the "rat barn" of Kanpai Pandas is questionable.

Related reading: "Is Kanpai Pandas, which received the LayerZero airdrop, a "rat warehouse"? 》

How should the airdrop tokens be distributed?

Not only ZRO, but also judging from the recent ZK airdrop, the number of qualified addresses is far less than the predicted value, the decision-making power is opaque, Nansen has distanced itself from the relationship, and suspicious addresses frequently appear, but there is no direct response from the official, etc. A series of mysterious operations also fell into the "rat warehouse" crisis. Previously, AltLayer was also hotly discussed by the community for its "rat warehouse" behavior due to its OG NFT.

Related reading: "ZKsync Airdrop Controversy: Partial Rules Raise Questions, Rat Warehouse Controversies Rise"

The root cause is that the community is dissatisfied with the airdrop allocation ratio. Retail investors have no way of knowing how to make their accounts comply with the official airdrop standards, and the official "final interpretation right" will only appear to be a conspiracy behind the scenes, which ultimately results in the airdrop being allocated to rats, while rats sell coins to retail investors to take over, and the remaining supply of tokens is still continuing. Unlock and continue smashing the market.

Looking back on the previous airdrops of Uniswap, the official stated that as long as they have used Uniswap, regardless of successful redemption or not, everyone can receive 400 UNI airdrops. At the same time, holding UNI also provides a series of benefits such as SOCKS tokens.

Although this kind of airdrop without any threshold has been criticized, in today's era of massive counterattacks and takeovers, it seems that UNI has become a truly successful airdrop case.

Encryption researcher Kerman Kohli provides insights after studying a series of controversial airdrop cases including Optimism, Starknet, EigenLayer, etc. He doesn’t think whales should get all the tokens just because they invested a lot of capital, but at the same time the smallest users should get some base amount of tokens anyway.

But these two goals are in direct conflict. For now, it seems that the industry-standard best approach is to implement a tiered system, where for "large" users, the amount allocated is slightly less linear (more liquidity, more tokens); for "medium" users, the allocation is Linear amount; for "small" users, a fixed amount is allocated. At the same time, use some rough criteria to implement this grading system

Related reading: "Understanding the Airdrop Mechanism: How to Design a Satisfactory Airdrop?" 》

Will ZRO airdrop be the end of the Lu Mao Party?

From ZRO’s point of view, many studios have suffered setbacks due to the “largest-scale” witch purging campaign it launched. Although the project team has a good reason, that is, they want to airdrop tokens to real users, rather than studios that sell off collectively as soon as they go online. But it’s really chilling to see the studio abandoning the project after spending real money to help the project improve data and test performance.

As for the strong dissatisfaction caused by ZRO, c00 k1 e (@lon e lyhors em e) said that the real reason is that these airdrop project parties are breaking the gap between VC, project parties and "lumao" users. balance.

The "hair-raising" users, or studios, themselves are the most vulnerable party in this abnormal game caused by VCs' irresponsible efforts to push up valuations and spend money wildly. The project side needs the user's interaction data to get money from the VC, and the VC needs the project side to issue Tokens to cash out. Each project side clearly uses Token as a carrot to dangle in front of users, and uses the atmosphere that will become Token in the future to allow users to work for free for data growth.

VC's own greed or poor investment judgment has led to extremely high valuations of these projects. The projects cannot form a reliable and stable business model, so they have to rely on issuing Tokens to attract retail investors. Dyspeptic excrement pays the bill.

For this kind of deformed model in which retail investors work hard and end up being abandoned in the end, perhaps it will eventually be eliminated.

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