News - Airdrop of LayerZero causes discussion in crypto community

By Luc Vesters

Airdrop of LayerZero causes discussion in crypto community

LayerZero's airdrop is causing a stir in the crypto community. The reason for the controversy was the introduction of a new mechanism for claiming tokens. Users who wanted to participate in the airdrop had to make a small donation for each ZRO token they wanted to receive via "proof-of-donation."

The money went to Protocol Guild, which supports Ethereum developers. According to the LayerZero Foundation, about US$18.5 million was raised. The fact that donations had to be made in exchange for an airdrop caused offence from some in the crypto community. "A forced donation is called a tax," wrote one user on X.

LayerZero co-founder Brian Pellegrino defended the mechanism: "No one is forced to donate. If you don't want to donate, just don't do it." Others, on the other hand, believe that the fact that there is a financial reward makes the procedure more reminiscent of an ICO than an airdrop.

The distribution itself went relatively smoothly. In total, LayerZero distributed 8.5 percent of the total token stock to the community. ZRO had a valuation of US$934 million at the beginning of trading. If all shares were issued, the value would be US$3.7 billion.

After the token launch, the ZRO price initially plummeted. Over the course of 24 hours, the coin lost 23 percent. At the time of writing, ZRO is trading at 3.15.

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