LayerZero’s completion of its first airdrop snapshot on May 1 marks a significant milestone in the protocol’s journey towards launching its native token, ZRO. The snapshot, confirmed by LayerZero Labs, will determine the allocation of ZRO tokens to eligible participants upon the official launch expected in the first half of 2024. This development has generated excitement within the DeFi community, with anticipation already evident on decentralized exchanges. Hyperliquid, the world’s largest perps DEX, is currently trading a perpetual futures contract for ZRO at $8.4, indicating a fully diluted valuation of approximately $17 billion for the upcoming token.
While the LayerZero airdrop presents an exciting opportunity, it also raises concerns about the potential impact of Sybil users. These individuals engage in airdrops using multiple cryptocurrency wallets solely to sell the rewards without any long-term engagement with the protocol. This practice can lead to a sharp decline in the price of the newly airdropped token following its launch. Past airdrops, such as Starknet’s and Arbitrum’s, have been affected by airdrop hunters. In February, Starknet’s eligibility list was predominantly composed of Sybil users, while in March 2023, airdrop hunters accumulated millions worth of tokens from the Arbitrum airdrop, contributing to a subsequent price decline.
The launch of the ZRO token within the LayerZero protocol is highly anticipated, particularly on decentralized exchanges. The successful completion of the airdrop snapshot is a crucial step towards this goal, with LayerZero Labs confirming the snapshot process. The allocation of ZRO tokens to eligible participants upon the official launch in the first half of 2024 will be determined based on this snapshot. Excitement for the ZRO token launch is already evident, with the token’s potential value reflected in the current trading price of the perpetual futures contract on Hyperliquid.
The completion of the first airdrop snapshot by LayerZero is a crucial development in the protocol’s journey towards launching its native token, ZRO. The successful completion of the snapshot indicates progress towards the official launch of the token expected in the first half of 2024. The anticipation surrounding the ZRO token launch is already visible on decentralized exchanges, with the trading price of the perpetual futures contract on Hyperliquid providing insight into the token’s potential value. As the protocol moves closer to its token launch, the excitement within the DeFi community continues to grow.
Despite the excitement surrounding the LayerZero airdrop and the upcoming ZRO token launch, concerns have been raised about the potential impact of Sybil users. These users, who engage in airdrops with multiple wallets solely for the purpose of selling rewards, can negatively affect the price of the newly airdropped token following its launch. Past airdrops have experienced similar issues, with Sybil users dominating the eligibility lists and contributing to subsequent price declines. As LayerZero moves forward with its token launch, addressing these concerns and ensuring fair distribution will be essential for the success and sustainability of the protocol.
