Bittime - The world of crypto airdrops is about to change drastically thanks to LayerZero, a renowned interoperability project. They have just announced new steps to address the issue of fraudulent users (sybil) on the ZRO token airdrop program.
This was marked by the first video snapshot uploaded via social media Twitter/X.
First Snapshot of ZRO Airdrop Has Been Taken
Source: Twitter/ X (@LayerZero_Labs)
LayerZero announced taking their first snapshot on May 2, 2024. This snapshot determines which users are eligible to claim ZRO tokens (LayerZero governance tokens) when they launch later.
Nearly 6 million different crypto addresses were detected to have interacted with the LayerZero interoperability protocol since March 2022. These interactions occurred across more than 50 different blockchain networks, including L1, L2, and other “exotic” networks with billions of dollars in transaction volume.
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According to Dune Analytics, cross-chain bridge activity on LayerZero has surged since March 2024, reaching a peak of around 250,000 daily transactions. Overall, more than 6 million transactions have occurred using this omnichain communication protocol.
Information regarding the ZRO airdrop claim date will be announced soon.
Also read: LayerZero Launches RFP Protocol for Token Distribution
LayerZero Challenge: Weeding Out Cheating Users (Sybil)
LayerZero's main challenge is to define criteria to exclude fraudulent users (sybils) who use hundreds of wallets to maximize airdrop profits, while still maintaining fair token distribution.
There is no exact launch date for the airdrop, but several brokers have already entered ZRO into the pre-market, indicating an official listing will occur soon.
Cheating Users Are Offered the Option: Confess or Get Caught
After the announcement of the first snapshot, LayerZero explained how they weed out fraudulent users (sybils). Sybils are individuals (or groups) who use tens to hundreds of different wallets to gain an unfair advantage in airdrops.
Seeing the high level of sybil activity in their airdrop, LayerZero offered a unique approach. For the first time, sybil users are officially invited to self-report (via a special form) and submit the wallet addresses they use for farming.
In return, they will receive 15% of the initial airdrop allocation. Sybil users now have two choices:
- Report to LayerZero and receive a 15% airdrop.
- Not reporting and hoping LayerZero doesn't detect their wallet. If detected, they will not receive the airdrop.
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This announcement shocked the community. Many users asked LayerZero CEO, Bryan Pellegrino, for clarification regarding the criteria for sybil users. Pellegrino responded with a tweet stating, "If you think you're a sybil, then you're most likely a sybil."
Technically, a sybil user is a closely linked wallet address. This means it is funded from the same wallet, having similar activity to tens, hundreds, or even thousands of other wallets.
Also read: LayerZero Airdrop: Complete Guide to Get $ZRO Tokens
This category also includes users who make transfers of small amounts (such as $0.01) and perform “no-value NFT bridges” on sybil farming apps such as Merkly, L2Pass, L2Marathon, and others.
Many complain that Merkly is the second most popular dapp (decentralized app) under LayerZero technology, and excluding all its users is unfair.
The LayerZero team clarified that using Merkly does not automatically make you a Sybil user, as long as you also use other protocols.
Snitch Hunting: LayerZero's Next Strategy
After the incentive program for reporting users, LayerZero will release a report containing a list of users who will be excluded from the airdrop. Starting May 18, sybil reports will be co-authored by on-chain analysis experts Nansen and Chaos Labs.
This report will consider the transaction quality of each address in the community with specific evaluation criteria. The goal is to detect suspicious activity and exclude wallets that indicate they belong to the same person or are funded by the same entity.
Once the report is published, the final stage of sybil identification will begin. This stage has drawn criticism from several circles. At this stage, the entire community is invited to become “spies” and report sybil users to LayerZero through a bounty program.
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User-reported addresses (once confirmed by the team) will be removed from the list of users eligible to receive the airdrop. Reporting users will receive 10% of the detected sybil airdrop allocation.
Some parties criticize this approach as "Snitch Hunting" which can cause discord and dissatisfaction within the community. There is a possibility of tensions arising and mutual reporting to get a larger airdrop allocation.
It is still too early to judge whether LayerZero's strategy will succeed in weeding out fraudulent users and ensuring fair distribution of airdrops.
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Also read:
Interoperable Breakthrough: Klaytn Connects to 65+ Blockchains with LayerZero Labs
LayerZero Employees Are Prohibited from Participating in Airdrops, They May Be Fired!
LayerZero CEO Predicts Only a Small Portion of Users Will Qualify for Airdrop
LayerZero Expands weETH Reach with OFT Support and Launches on Multiple Networks
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