Subscribe to our newsletter and stay informed
LayerZero Labs, a prominent cross-chain interoperability protocol, is taking decisive action against sybil farming ahead of its highly anticipated airdrop.
In a recent announcement, LayerZero Labs declared its commitment to identifying and excluding sybil farmers from receiving allocations in its upcoming token generation event.
Furthermore, the project plans to launch a reward program, offering a 10% bonus of the intended token allocation to bounty hunters who identify additional sybil users.
Sybil farming, the creation of multiple wallets controlled by a single user to maximize airdrop benefits, is a challenge LayerZero Labs is determined to address.
The protocol aims to distribute tokens to genuine and long-term users, prioritizing fairness and the best interests of the ecosystem.
LayerZero Labs has witnessed interaction from nearly 6 million unique wallet addresses since its inception over two years ago.
To ensure a fair distribution of tokens, the project has committed to excluding sybil farmers from the airdrop. This commitment was publicly announced via a tweet, underlining the team's dedication to combating sybil farming.
Instances of sybil farming have been observed in crypto space before.
For example, in 2022, Optimism disqualified over 17,000 suspected wallets engaged in sybil activity from its airdrop, while ZkSync Era discovered 21,877 wallets involved in sybil farming activities in September.
LayerZero Labs has identified several on-chain activities that may lead to exclusion from the airdrop, including "industrial farming" through multiple wallets and minting "valueless" NFTs for the purpose of transferring them across networks.
The project encourages self-reporting by sybil farmers through signed on-chain messaging until May 18, offering them a chance to receive 15% of their intended airdrop allocation.
Additionally, LayerZero Labs plans to provide an API that allows industrial farmers to self-report. However, airdrop eligibility will be subject to legal or geographic requirements, meaning sybil farmers operating from countries with regulatory risks may have little to gain from self-reporting.
LayerZero Labs recently completed the first snapshot for its highly anticipated airdrop.
The project plans to distribute tokens to early adopters in the first half of 2024, generating significant anticipation, particularly on decentralized exchanges.
On Hyperliquid, the world's largest perps DEX, a perpetual futures contract for ZRO is currently trading at $8.4, suggesting a fully diluted valuation of approximately $17 billion for the forthcoming token.
