LayerZero, a cross-chain interoperability protocol, has taken a significant step towards the launch of its native token, ZRO. The protocol recently completed its first airdrop snapshot on May 1, marking a crucial milestone in its development. This achievement has sparked a wave of excitement within the DeFi community.
LayerZero Labs officially confirmed the completion of the airdrop snapshot in a post on May 2. The snapshot will play a vital role in determining the allocation of ZRO tokens to eligible participants upon the token’s official launch, expected to take place in the first half of 2024.
The announcement from LayerZero stated, “LayerZero will have a native token within the protocol, and its distribution is expected to occur in the first half of 2024.”
Anticipation for the ZRO token launch is already building momentum, especially on decentralized exchanges. On Hyperliquid, the world’s largest perps DEX, a perpetual futures contract for ZRO is currently trading at .4. This indicates a fully diluted valuation of approximately billion for the upcoming token.
However, despite the positive developments surrounding the LayerZero airdrop, there are concerns about the potential impact of Sybil users. These users engage in airdrops with multiple cryptocurrency wallets solely to sell the rewards without any intention of long-term engagement with the protocol. This behavior can result in a significant price decline for the newly airdropped token post-launch.
Past airdrops have been affected by airdrop hunters, with examples like Starknet and Arbitrum experiencing similar challenges. It is crucial for LayerZero to address these issues to ensure the successful launch and sustainability of the ZRO token in the market.