LayerZero Labs Completes Initial Snapshot Ahead Of Airdrop

As a researcher with experience in the blockchain and cryptocurrency space, I’m excited to see LayerZero complete the initial snapshot for its upcoming airdrop. The protocol’s commitment to interoperability and decentralization aligns with my belief that the future of the industry lies in connecting various blockchains and eliminating third parties.

LayerZero, a cross-chain interoperability protocol, has completed the initial snapshot as it prepares to launch its long-awaited airdrop for users, set to take place in the first half of 2024. 

The eligibility for the snapshot was decided based on transactions completed before 11:59:59 PM UTC on May 1, 2024. The developers of the protocol hinted at potential additional airdrops in the future.

LayerZero Completes Initial Snapshot 

In December 2023, LayerZero revealed intentions to introduce a token, with a launch scheduled for the initial half of 2024. The team also disclosed that more than one airdrop event would take place. Snapshot #1, which marks the cut-off point for transactions qualifying for an airdrop, was concluded on May 1st, 11:59:59 UTC.

DeFi protocols often employ airdrops as a strategy to attract early users, distributing new cryptocurrencies as incentives. The exact rewards for network participation haven’t been disclosed yet, but the timing aligns with LayerZero’s 203 statement.

“Since the inception of LayerZero, our protocol has been designed with the capability to include a native token. This is evident in the unchangeable code that was made public on day one. We acknowledge the confusion within the community regarding this matter over the past few months. We want to make it clear once and for all that LayerZero will indeed have its own token. The distribution of this token is a priority for us, and we anticipate it taking place during the first half of 2024.”

In simpler terms, taking snapshots usually signifies the beginning of funds being transferred by liquidity providers to various other initiatives, while retaining eligibility for potential future rewards.

Eliminating Third Parties 

The protocol developed by LayerZero facilitates communication between different blockchains without the need for intermediaries. Currently, Stargate and Radiant Capital are utilizing this technology. Following LayerZero’s confirmation of a snapshot, both projects experienced modest growth in the value of their native tokens. In April 2023, LayerZero secured $120 million in funding during its Series B round, which valued the company at an impressive $3 billion. Notable investors included Andreessen Horowitz and Sequoia Capital.

ZRO Hyperp

In September 2023, ZRO by LayerZero became the initial Decentralized Exchange (DEX) listing on HyperLiquid’s perpetual futures platform, known as Hyperps. A core contributor at HyperLiquid, who preferred anonymity, mentioned that ZRO was trading at $8.60, suggesting a total valuation of approximately $17 billion. Hyperps function similarly to traditional perpetual futures contracts. However, unlike these contracts, they don’t rely on the price of an underlying spot or index for their operation.

Airdrops: More Harm Than Good?

As an analyst, I’ve observed that airdrops are designed to generate excitement around a protocol by providing rewards to early adopters. However, the implementation of these airdrops comes with its challenges. There is a significant presence of professional airdrop hunters who exploit multiple cryptocurrency wallets to farm these airdrops, with no genuine interest in using the protocol long-term. In fact, they sell off the rewards shortly after claiming them.

As a analyst, I would rephrase the given information as follows:

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2024-05-03 12:09