‘Donation’ Discussion in Giant Airdrop: Altcoin Price Falls!

LayerZero made a big splash with the giant airdrop and listing news on leading exchanges. ZRO, the local token of the altcoin project, increased by 15.15 percent in just 20 minutes after its launch on June 20. However, the project team made a statement about the airdrop, which includes a donation system. After this, people started debating whether the donation mechanism was ingenious or just a “tax” excuse. Thus, the token price dropped sharply.

LayerZero made ‘donation’ mandatory in airdrop, altcoin price dropped!

cryptokoin.com As you follow from , cross-chain interoperability protocol LayerZero launched its token yesterday. The altcoin project’s newly launched token, ZRO, went into decline shortly after its launch due to its founder advocating a controversial donation criterion that some likened to a “tax” for claiming tokens. Meanwhile, some individuals disagree. He thinks that this mechanism could be the right step to solve the problems experienced in token airdrops recently.

However, the controversy still negatively affected the performance of the token. ZRO rose 15.15% to $4.71 in just 20 minutes after its launch on June 20. However, it witnessed a 22% drop within two hours. According to CoinMarketCap data, ZRO was trading at $3.35 at the time of writing, down more than 17% on a daily basis.

ZRO daily price chart. Source: CoinMarketCap

Donation requirement and community reaction to receive ZRO airdrop

The launch of ZRO came with its own set of controversies. LayerZero required users who wanted to claim the tokens to donate a small amount of money per ZRO token. LayerZero, from the official X account, said, “To claim ZRO, users must donate 0.10 USD per ZRO in USDC, USDT or local ETH. “This small donation goes directly to the Protocol Guild,” he wrote.

Source: LayerZero Foundation

LayerZero estimated that the donations would result in approximately $18.5 million donated to the Protocol Guild, a collective funding system for Ethereum developers. Users argued that having to pay a “tax” changed the nature of the “airdrop” to something more like an initial coin offering (ICO). Therefore, this attack was met with a wave of reaction from the crypto community. Users flooded LayerZero’s post with comments like “Is this a joke” and “how about paying for this?”

Meanwhile, some members of the crypto community think that ZRO’s donation request mechanism is a step in the real direction for future airdrops. Adam Cochran “People whining about donation in LayerZero airdrop are stupid!” He reacted by saying. Cochran stated that this application is used to support a larger ecosystem. He also noted that it is a convenient way to set a base cost value for a token.

Confirmed that LayerZero token launch “is not an airdrop”!

LayerZero argued that airdrops no longer contribute to “the goals of equitable distribution, community building, and protocol sanity that airdrops were originally introduced to solve.” This is mainly due to token buyers who have “little or no interest” in the long-term success of the project due to airdrop farming and the increase in Sybil holdings. This refers to entities that create and use multiple wallets for an airdrop farming.

LayerZero co-founder Bryan Pellegrino spent the day defending the token launch. He also reiterated that no one has rights to the tokens and that users should refrain from claiming them if they do not want to donate. In this context, Pellegrino said, “There is no such thing as forced donation! If you don’t want to donate… just don’t ask. “It’s not something you have, it’s something that’s offered,” he said.