LayerZero\'s ZRO Airdrop Drives Fee Revenue on Arbitrum to All-Time Highs

LayerZero's highly anticipated ZRO airdrop has driven fee revenue on Arbitrum, the top Ethereum Layer 2 network by total value locked (TVL), to all-time highs.

LayerZero's much-anticipated ZRO airdrop has helped propel fee revenue on Arbitrum, the leading Ethereum Layer 2 network by total value locked (TVL), to record highs.

On June 20, daily revenue on Arbitrum surged to $3.1 million, marking a 21,000% increase from $14,000 the previous day, according to Dune Analytics. The spike came as ZRO airdrop claims went live, with Arbitrum serving as the main coordination chain for the drop.

The milestone beat out Arbitrum’s previous record daily revenue by 68%, with the network collecting $2.13 million in fees on Dec. 15, 2023, amid a surge in inscriptions activity on the chain.

The ZRO airdrop also drove an increase in overall activity on Arbitrum. The network hosted 40.3 transactions per second (TPS) on Friday, a 30% increase in two days, according to L2beat. Arbitrum posted an all-time of 50 TPS in December 2023.

"One of the biggest winners from the LayerZero airdrop is Arbitrum," said Austin Marrazza, a product manager at Offchain Labs. "DAO raked in $3 million in congestion fees from claiming traffic today."

LayerZero is a prominent cross-chain interoperability protocol. According to Messari, LayerZero facilitated more than $6.7 billion in cross-chain asset transfers and 29.6 million messages in Q1 2024.

Ethereum ecosystem activity tags new high

On Friday, the throughput of the Ethereum ecosystem also hit an all-time high of 285 TPS.

In addition to the jump in Arbitrum activity, the record was also fueled by a recent spike in activity on Xai, a gaming-focused Layer 3 network co-developed by Offchain Labs, the team behind Arbitrum.

Xai averaged 103.8 TPS over 24 hours, marking a nearly 6,000% increase in 10 days.

ZRO airdrop controversy

On Thursday at 7 a.m. ET, the LayerZero Foundation began processing claims for its newly minted ZRO token, which will remain open until September 20. Almost 1.3 million wallets are eligible for the airdrop.

To receive their tokens, airdrop claimants are required to make a $0.10 donation per ZRO token to the Protocol Guild, a non-profit organization that funds Ethereum core developers.

The "Proof-of-Donation" mechanism is expected to generate up to $18.5 million for the Protocol Guild, and the LayerZero Foundation has pledged to match donations up to $10 million over a four-year vesting period.

However, LayerZero has faced criticism for its Proof of Donation system.

"Mandatory donations sound more like a glorified ICO,” said Banteg, a contributor to Yearn Finance. “Stop bulk funding Protocol Guild; it's been successful enough."

“Is it really alignment if it's forced?" added Louis Cooper, co-founder at StrVcture Capital. ” If I'm at McDonald's and they force me to donate to get my cheeseburger, do I really care about the kids or am I just hungry?”

But not everyone is unhappy. Adam Cochrane of Synthetix tweeted in support of the donation mechanism, arguing it aligns with supporting Ethereum’s core developers and long-term goals.

“People whining about the donation on LayerZero airdrop are dumb," Cochrane posted on X. “You are getting something free, and being asked to donate a fraction of it to support a greater ecosystem… The money is literally going to support free tooling that helps all projects. Stop thinking you deserve free money for just existing.”

"There is no forced donation; if you don't want to donate, simply don't claim," added Bryan Pellegrino, CEO of LayerZero Foundation. "This is not something you own; it's something being offered."

According to CoinGecko, LayerZero’s ZRO token is currently trading at $3.15, down 36% from its high, with a market cap of $772.8 million.

News source：https://www.kdj.com/cryptocurrencies-news/articles/layerzero-zro-airdrop-drives-fee-revenue-arbitrum-time-highs.html

The above is the detailed content of LayerZero\'s ZRO Airdrop Drives Fee Revenue on Arbitrum to All-Time Highs. For more information, please follow other related articles on the PHP Chinese website!