LayerZero drew a reaction with the donation issue: 22 percent decrease!

LayerZero rose 15.15 percent shortly after its launch. But the token fell 22 percent as investors debated whether the donation mechanism was a tax excuse.

LayerZero’s newly launched token, LayerZero (ZRO), has fallen 17 percent since controversy over the donation criteria for claiming tokens, which some individuals have likened to a “tax.” Some investors disagree with the criticism and think that the system could be a good step towards solving the problems in recent airdrops.

It was likened to a tax, the decline was inevitable

Following its launch on June 20, ZRO rose 15.15 percent to $4.71 in just 20 minutes, followed by a 22 percent decline within two hours. With this development, ZRO brought about its own controversy. LayerZero did this in a way that required users who wanted to claim the tokens to donate a small amount of money per ZRO.

“To claim ZRO, users must donate $0.10 per ZRO in USDC, USDT or local ETH. This small donation goes directly to the Protocol Guild,” LayerZero wrote in a June 20 X post.

The move was met with a wave of reaction from the crypto community, as users claimed that paying taxes changed the nature of the airdrop, making it more like an ICO. Users asked, “Is this a joke?” and “How about paying for this?” flooded LayerZero’s post.

LayerZero states that ZRO does not airdrop

LayerZero is adamant that the token’s launch was not an airdrop.

In a June 20 statement, LayerZero argued that airdrops no longer contribute to “the goals of fair distribution, community building, and protocol sanity.”

This is mainly due to airdrop farming and the increase in Sybil assets from individuals who have “little to no interest” in the long-term success of the project; This refers to organizations that create and use multiple wallets for airdrop farming. .

LayerZero co-founder Bryan Pellegrino apparently spent the day defending the token, reiterating that no one has the right to receive tokens and that users should refrain from requesting them if they do not want to donate.

“There is no mandatory donation, if you don’t want to donate… just don’t request. “This is not something you have, it is something that is offered,” he said.

Meanwhile, some members of the crypto community agree that ZRO’s donation request mechanism could be a step in the right direction for future airdrops.