News
The launch of LayerZero’s ZRO token causes a stir
6pm ▪ 3 minute read ▪ by Fenelon L.
The unusual distribution process for LayerZero Labs’ ZRO tokens, which requires a donation to access them, has confused Polymarket bettors. Cryptocurrency users are currently disputing a $680,000 bet and questioning the true nature of this launch.
A $680,000 bet at the center of controversy
LayerZero Labs surprised the crypto community by unveiling a new mechanism to distribute 85 million ZRO tokens, called “Proof-of-Donation”.
In fact, a get ZROEligible applicants must make a donation of $0.10 per token to Protocol Guild, a non-profit collective of Ethereum’s top researchers and developers.
This approach breaks with the usual practices of “airdropping,” which involve giving out tokens for free to generate interest and encourage adoption. LayerZero justifies this choice by arguing that traditional “airdrops” do not foster community building or the health of long-term protocols.
The project insists it has deliberately avoided the term “airdrop” in its communication to highlight this difference. However, this semantic distinction is central to the current controversy surrounding Polymarket.
On Polymarket, a decentralized betting platform, users had placed massive bets on the realization of a “ZRO airdrop” before June 30, with a total prize pool of $680,000.
But LayerZero’s unusual rollout cast doubt, causing the “Yes” odds to plummet to 54% shortly before the bet concluded. Many bettors now dispute the final result in favor of “Yes”.
Users turned to UMA Protocol, Polymarket’s dispute resolution partner, to determine the truth of the outcome. Its “decentralized lie detector”, which is based on the vote of UMA token holders, must decide the true nature of the ZRO launch. However, some Polymarket users fear a manipulated process and cry scandal.
The debate rages on Polymarket’s Discord server. For some, LayerZero does not have the authority to unilaterally redefine what an “airdrop” is.
Others recall that during a previous controversy regarding the Lens protocol, token sales were explicitly excluded from the definition of “airdrop”. However, a recent “rules update” from Polymarket requires you to consider the broader context of ZRO distribution to make a decision.
In summary, the resolution of this bet will have significant implications, not only for Polymarket bettors but also for the collective understanding of token distribution mechanisms in the crypto ecosystem.
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Fenelon L.
Passionate about Bitcoin, I want to explore the meanings of blockchain and cryptocurrencies and participate in my discoveries with the community. My dream is to live in a world where privacy and financial freedom are guaranteed for everyone, and I firmly believe that Bitcoin is the tool that can make this possible.
DISCLAIMER
The views, thoughts and opinions expressed in this article are solely those of the author and should not be relied upon as investment advice. Do your research before making any investment decisions.