LayerZero Airdrop results spark controversy, Token distribution model faces challenges

After more than a month of witch account cleaning activities, the LayerZero Foundation recently announced the Airdrop eligibility query page. However, the Airdrop results left many users feeling disappointed.

As one of the highly anticipated potential Airdrop projects, LayerZero was once given high hopes. However, with the launch of the witch cleanup activity, many accounts were marked as witch accounts, and many users found themselves empty-handed after months of effort.

As one of the most highly anticipated airdrop projects recently, LayerZero has sparked quite a controversy. While users have questioned the project's sincerity, it has also prompted thoughts on whether the current industry needs a new token distribution model.

The Process of the Witch Cleanup Event

LayerZero was founded in November 2021 during the bull market. With strong capital support and promotion from key industry figures, LayerZero quickly rose to prominence. The announcement of plans to launch a governance Token Airdrop garnered significant attention within the community. The project's capital background, high valuation, and industry status have led many to anticipate substantial Airdrop returns, attracting a large number of Airdrop hunters. Data shows that since April of last year, the on-chain interaction volume of LayerZero has significantly increased, with daily transaction counts reaching a peak of 490,000. Such high-frequency interactions not only enhanced the platform's data performance but also generated considerable revenue.

Under high expectations, the community has been eagerly anticipating the LayerZero Airdrop. Despite multiple reports of the Airdrop being delayed several times, on May 2nd of this year, LayerZero announced the completion of the first phase snapshot, and market sentiment reached its peak.

Research institutions predict that the value of LayerZero's Airdrop may range between 600 million to 1 billion USD. Under conservative estimates, each user is expected to receive between 750 to 1500 USD. In optimistic estimates, each user is expected to receive between 1350 to 2700 USD.

However, just as users were filled with anticipation, LayerZero suddenly announced an unexpected decision. On May 3rd, LayerZero announced a one-month witch hunt to ensure the fairness of the Airdrop.

This review introduces a new "bounty reporting mechanism." The review is divided into three stages: self-exposure stage, official review stage, and bounty reporting stage. The most controversial is the bounty reporting stage, where anyone can report witch accounts, and successful reporters will receive 10% of the reported person's Airdrop allocation.

Ultimately, the review results showed that there were a total of 1.28 million qualified addresses, with approximately 803,000 addresses deemed potential witches, of which more than 338,000 addresses self-reported as witches.

Controversies and Doubts

As the witching audit concluded and users eagerly anticipated the arrival of the Airdrop, LayerZero found itself embroiled in the "mouse warehouse" controversy. While most users were dissatisfied with the Airdrop results, some reported receiving a substantial amount of ZRO Tokens. Many of these fortunate individuals held Kanpai Pandas NFTs. For instance, an address holding 50 of these NFTs received 5335.55 ZRO Tokens.

Due to the Kanpai Pandas project's lack of notoriety, this has raised users' suspicions about "insider trading." However, the allegations of "insider trading" concerning the project have not yet been substantiated.

At the same time, many users expressed that they invested a lot of effort and cost, but could only obtain a small amount of Tokens. Based on the off-market price of 3 dollars per piece, this is far from covering the costs. These users believe that LayerZero's this Airdrop "lacks sincerity".

Some users believe that the end of Zksync and LayerZero Airdrop may mark the end of the Airdrop era.

The core of the problem lies in the community's dissatisfaction with the Airdrop distribution. Retail investors find it difficult to determine how to meet the official Airdrop criteria, while the official "final interpretation rights" raise suspicions of operational opacity.

Some believe that the fundamental reason for the strong dissatisfaction caused by the ZRO Airdrop is that these project parties have disrupted the balance between investment institutions, project parties, and ordinary users. Project parties need user interaction data to attract investment, while investment institutions need project parties to issue Tokens to achieve an exit. Project parties attract users to contribute to their data growth for free by promising Tokens that may be issued in the future.

Although the recent airdrops have been disappointing, participating in airdrops may still bring profits for ordinary users, even though the profits are continuously declining.

Airdrop Projects Worth Following in the Future

1. Manta Network: A cross-chain Token project that supports cross-chain Token transfers between multiple chains.

2. Canto: A Layer 1 blockchain built on the Cosmos SDK, enabling cross-chain functionality through LayerZero.

3. DappRadar: DApp Data Analysis Platform.

4. KelpDAO: A liquidity re-staking protocol, its rsETH can be cross-chain to other L2.

5. Pendle: Yield Trading Protocol.

These projects each have their own characteristics and may become new focal points for future Airdrops. However, users should still carefully assess the risks and rewards when participating.