LayerZero (ZRO) Token Introduces “big Sybil hunt” to Reduce Token Farming

When ZRO first hit the market almost three months ago, it had a price tag of $4.4. Currently, it has recorded only a 23% price dip from launch.

LayerZero (CRYPTO: ZRO) has seen its native token perform better than those of some competing Ethereum Layer 2 networks, despite being hit with claims of prioritizing developers over users.

What Happened: LayerZero's CEO Bryan Pellegrino has highlighted two key factors that have contributed to the success of ZRO token.

The token was airdropped on June 20, 2024, and has since seen a 23% price dip from its initial launch at $4.4.

During this time, ZRO has outperformed tokens of zkSync (ZK) and Starknet (STRK), which were also airdropped around the same time.

ZRO token holders also got to vote on the LayerZero protocol's fee switch, with an immutable voting contract enforcing a public on-chain referendum every six months.

“We did a lot of very unique things with our airdrop. One was a big Sybil hunt, which helped block bots and excessive farming,” Pellegrino noted at Korea Blockchain Week.

Excessive farming is a concern for many projects that are undertaking token distributions.

Some crypto enthusiasts will find ways to excessively farm the tokens, preventing it from reaching real project users.

With the “big Sybil hunt,” LayerZero was able to put its token in the hands of the network's most dedicated users.

“The number one priority for any team that's doing an airdrop is bridging the gap between expectations and reality,” Pellegrino said, adding that LayerZero put a lot of thought, manpower, and resources into striking this balance.

“There was some initial hesitation from community members when the protocol introduced the Sybil hunt,” Pellegrino said. However, once the community realized the effort and goal (to give real users higher allocation), they were more receptive.”

According to CoinGecko, when ZRO first hit the market almost three months ago, it had a price tag of $4.4. Currently, it has recorded only a 23% price dip from launch.

This price level is still encouraging, considering how the project faced intense backlash from its community for implementing a mandatory donation for users who wanted to claim their airdropped tokens.

Starknet Community Backlash: STRK token was airdropped to 1.3 million wallets on February 20 at an opening market price of $5.

The price level reflected both anticipation and the perceived value within the Starknet ecosystem.

At the time, primary market-making players, like Amber Group, Wintermute, and Flow Traders, made substantial investments. This capital injection reinforced the token's credibility and market potential.

Similarly, the community injected liquidity and momentum into Ethereum Layer 2 Starknet.

However, claims that Starknet over-prioritized insiders at the expense of legitimate network users surfaced.

Starknet was also accused of exposing its users to massive “airdrop squatters.” These claims ended up tarnishing the token's outlook.