LayerZero Airdrop Disappoints DeFi Users

Omnichain interoperability protocol LayerZero recently released its eligibility checker for the airdrop of its upcoming token, ZRO. However, many users were frustrated by the size of the allocations they received.

The discontent comes after a poorly received ZkSync airdrop earlier this week. In this case, several DeFi farmers and users also expressed dissatisfaction.

The distribution of ZRO appears to have favored specific groups, such as holders of Pudgy Penguins and Kanpai Pandas, over those with a large number of transactions or wallets that hold Gh0stly Gh0sts, the first “omnichain” NFT to use LayerZero in 2022. Still there is no official breakdown of eligibility criteria. And this has also generated speculation and discontent in the community.

The allocation of the token took several factors into consideration. This includes, for example, total transactions using a LayerZero-integrated dApp, NFTs from partners, liquidity provided through Stargate Finance, as well as bonuses and multipliers for early users.

LayerZero airdrop frustrates users

Nearly 1.28 million wallets are eligible for the airdrop. A percentage of 8.5% of the total 23.8% community allocation must be distributed at the token launch. The team will distribute the rest over the next three years through retroactive rewards, developer incentives, and community distributions.

Due to the large number of eligible wallets, which is almost double compared to the ZkSync airdrop, many users were prepared to receive smaller rewards. The pre-market valuation for ZRO is $4.5 on ByBit and Kucoin. This suggests a fully diluted value (FDV) of US$4.5 billion.

The growing saturation of airdrop protocols has left airdrop hunters increasingly dissatisfied. After all, the return on investment decreases with each new event. This situation has led protocols to face the wrath of their communities, with users acting more demandingly.

Cobie, founder of Echo.xyz, commented on the current state of the airdrop industry: “If you are a founder, in my opinion, you are probably thinking about not doing any airdrops currently. The disadvantages are much greater than the advantages now.”