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

The LayerZero Labs team hinted at information that may disqualify the majority of airdrop hunters who farmed the expected ZRO airdrop for some two years.

LayerZero CEO Bryan Pellegrino reportedly said that less than 15% of wallets that interacted with the protocol would be eligible for the upcoming airdrop scheduled for this year’s first half.

On May 8, WuBlockchain cited a private Telegram message where Pellegrino supposedly espoused doubts regarding the validity of most addresses. In the text, the LayerZero Labs co-founder noted that fewer than three million out of six million possible addresses had only made a single transaction.

Furthermore, Pellegrino estimated that about 400,000 to 800,000 addresses were real users rather than Sybil participants.

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LayerZero tackles Sybil problem with filtering plan

Sybil users create a cluster of addresses to interact with protocols during airdrop participation and accrue rewards by “gaming the system.” The wallets are often controlled by a single entity or a group aiming to secure a larger allocation.

Typically, Sybils may snatch chunks of the airdropped tokens from other users, but LayerZero shared a plan to address this concern. Pellegrino and the team unveiled a “report-to-earn” scheme, allowing Sybils to self-report and retain 15% of the allocation or risk receiving zero if caught by other users.

Sybil Report
LayerZero has been working with industry-leading partners @chaos_labs and @nansen_ai to conduct our sybil detection report. This analysis will consider every user’s total transactions weighted across all LayerZero applications with the goal of aligning TGE with… pic.twitter.com/5WmSHhQSYx

— LayerZero Labs (@LayerZero_Labs) May 6, 2024

The platform also promised a reward for users who successfully identify and report Sybil farmers. So far, the initiative has received mixed reactions from community members.

Some have agreed that the idea will discourage Sybil hunters from diluting airdrops, while others complained that the process would nullify over 24 months of farming.

GG, 2 years of farming wasted because layer zero got these milady nerds acting like bounty hunters man what the fuck pic.twitter.com/v6G42Gkkgd

— vydamo (@vydamo_) May 6, 2024

Read more: LayerZero to fire employees participating in internal airdrops

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