LayerZero has called the end of the ZRO token claim period and is now proceeding to the next token redistribution phase. However, only active wallets with transaction histories will be eligible for redistribution, leaving out inactive or audited Sybil wallets.
LayerZero announces criteria for eligibility
In June, Bryan Pellegrino, CEO of LayerZero, declared that all unclaimed ZRO tokens would be redistributed to users who had already claimed them once the claim period ended.Â
However, at the time, the protocol had yet to report the planned end date for the claim period. LayerZero only specified that the reallocation would align with LZ Core’s allocation and be distributed proportionally, with a cap in place to ensure that all ZRO tokens are effectively used.
In a post on September 20, LayerZero then announced the end of the ZRO token claim period.
The ZRO claim period has ended. Any unclaimed tokens are being reallocated to wallets that claimed before 9 AM PT today.
Eligibility for reallocation:
– Ineligible: Wallets that claimed ZRO but had no transactions after the Token Generation Event (TGE) will not receive any more… pic.twitter.com/rOBimR8Fx0— LayerZero Foundation (@LayerZero_Fndn) September 20, 2024
LayerZero even detailed the qualifications needed to receive additional tokens. According to the provided criteria, wallets with no transaction activity and Sybil wallets identified in the first or second round of reviews were unqualified for reallocation. That would mean only wallets with at least one transactional activity post-TGE and had previously claimed the airdrop would be eligible.
The company also clarified that all eligible wallets would receive a pro-rata share of ZRO based on their original claim from the TGE and that all ZRO tokens not claimed in the next 30 days will be donated to the LayerZero Foundation.
LayerZero’s airdrop raised varied reactions from the crypto community
In June, LayerZero directed its ZRO token holders to make claims to their planned airdrop. However, the firm required all participants to make a 10% donation to the platform’s Protocol Guild to receive any additional tokens.
The donation requirement did not sit well with some token holders. Some criticized the company for making the donations compulsory while others opposed the general idea of an airdrop.
For instance, Echo.xyz’s founder Cobie commented, noting that airdrops currently have more significant risks than advantages and that most founders are probably not thinking about having one.
LayerZero defended its decision to hold an airdrop and its mechanics saying the donations would highlight the token holders’ commitment and long-term alignment to the protocol.
Some users raised concerns about the company’s requirement for Sybil airdrop farmers to report their activities, questioning the company’s airdrop plans.
