As a seasoned crypto investor with a knack for discerning the potential of projects and a keen eye for innovative solutions to common problems, I must admit that LayerZero Labs has caught my attention. The success story of ZRO, their native token, is quite impressive, especially considering the competitive landscape.
According to Bryan Pellegrino, CEO of LayerZero Labs, the sustained success of their project’s native token ZRO can be attributed to two key factors:
During this period, it has outperformed similar tokens from Ethereum Layer 2 networks such as zkSync (ZK) and Starknet (STRK), which were distributed at the same time. On the other hand, ZRO token owners have been granted the right to participate in the decision-making process for the LayerZero protocol’s fee switch through a permanent on-chain voting contract, ensuring a public referendum every half year.
LayerZero Introduces “big Sybil hunt” to Curtail Token Farming
During Korea Blockchain Week, Pellegrino pointed out that LayerZero had done some remarkably distinct things with their airdrop. One significant accomplishment was the implementation of a “major anti-Sybil operation”, which effectively deterred bots and excessive farming. Excessive farming is a critical issue that numerous projects grapple with when they undertake token distribution.
Instead of crypto fans excessively accumulating tokens, which keeps them away from real-world users, LayerZero successfully distributed its token to the network’s most committed users through the “big Sybil hunt”. The project’s CEO emphasized that the main goal for any team involved in an airdrop is to narrow the gap between expectations and actual outcomes.
From a crypto investor’s perspective, I personally witnessed LayerZero dedicating resources and personnel to strike this balance. Initially, there was some apprehension within our community when the protocol unveiled the Sybil hunt. However, as we understood their intent (to prioritize real users for higher allocation), our community became more open-minded about it.
As reported by CoinGecko, when ZRO was initially launched about three months ago, it was priced at $4.4. Since then, it has only experienced a 23% decrease in value from its initial release. Given that the project faced significant criticism from its community due to the requirement of a compulsory donation for users seeking their airdropped tokens, this current price level remains quite promising.
Starknet Face Community Backlash
Conversely, on February 20th, approximately 1.3 million wallets received the STRK token through an airdrop, with an initial market value of $5 per token. This price point mirrored the combined excitement and estimated worth within the Starknet community. Notably, major market makers such as Amber Group, Wintermute, and Flow Traders made significant investments at that time.
“This infusion of capital bolstered the reliability and growth prospects of the token. In a parallel way, the community contributed liquidity and energy to Ethereum’s Layer 2 platform, Starknet.
Unfortunately, allegations arose suggesting that Starknet favored insiders too heavily, potentially neglecting regular network users. Additionally, Starknet faced criticism for allowing “airdrop squatters,” which harmed its user base. Ultimately, these accusations negatively impacted the token’s reputation.
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2024-09-09 14:06