LayerZero CEO: 85% of addresses may be ineligible for airdrop

As a researcher with experience in blockchain technology and crypto airdrops, I find the recent announcement from LayerZero Labs regarding their upcoming airdrop and Sybil problem mitigation plan quite intriguing. Based on the available information, it appears that less than 15% of wallets interacting with the protocol will be eligible for the airdrop, which could potentially disqualify many long-term farmers who have been participating in the expected ZRO airdrop for approximately two years.

The LayerZero Labs team dropped hints about potentially disqualifying information for most individuals who participated in farming the ZRO airdrop for approximately two years.

Approximately 85% of the wallets that have engaged with LayerZero’s protocol will not qualify for the forthcoming airdrop, which is slated for the first half of this year, according to reports from Bryan Pellegrino, CEO of LayerZero.

As an analyst, I’d rephrase it as follows: Based on a private message disclosed by WuBlockchain on May 8th, Pellegrino, the co-founder of LayerZero Labs, expressed concerns about the authenticity of over half of the six million Ethereum addresses. He pointed out that only around three million addresses had been involved in a single transaction.

Approximately 400,000 to 800,000 of the identified addresses, according to Pellegrino’s assessment, represented genuine user accounts instead of Sybil entities.

LayerZero tackles Sybil problem with filtering plan

Individuals using Sybil may group together multiple accounts to engage in airdrops and procure greater rewards, which some might describe as manipulating the process. The managing entities behind these wallets seek to maximize their share of the distribution.

As a researcher studying the topic of token airdrops, I’ve noticed that Sybils, who are known for their ability to snatch large portions of tokens from other users, can pose a significant challenge. However, LayerZero has proposed an innovative solution to this issue. Instead of passively allowing Sybils to take chunks of the airdrop, they introduced a “report-to-earn” scheme. Under this system, Sybils have the option to self-report their participation and retain 15% of the allocation. Alternatively, if they are caught by other users, they risk receiving no tokens at all. By incentivizing honest reporting, LayerZero aims to reduce the impact of Sybil attacks on airdrops and promote fairness in token distribution.

As a crypto investor in LayerZero, I’ve been excited about the collaborative efforts we’ve made with renowned industry partners Chaos Labs and Nansen AI to carry out an extensive Sybil detection analysis. In this investigation, we will assess each user’s total transaction history across all LayerZero applications, focusing on the weighted significance of their transactions as we strive for a fair and transparent Token Generation Event (TGE) alignment.

— LayerZero Labs (@LayerZero_Labs) May 6, 2024

The platform additionally offers incentives to users who effectively detect and alert on Sybil farmers. This proposal has garnered varied responses among community participants.

One perspective holds that this concept may deter Sybil hunters from weakening airdrops, whereas another viewpoint asserts that it could eliminate the effects of farmers’ efforts over a period of approximately two years.

It’s a shame, GG. For two long years, our farming efforts have been in vain due to an unexpected issue with layer zero. These ladies, who were once tranquil farmers, have transformed into relentless bounty hunters, leaving us bewildered and asking “what the heck is going on?”

— vydamo (@vydamo_) May 6, 2024

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2024-05-08 18:54