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Layer Zero, an influential player in the field of blockchain interoperability, has introduced a completely new way of distributing tokens – altruism meets sharing. For their ZRO token, the blockchain entity decided to start an unconventional airdrop claim process where people can donate directly to the development community.
This new project will have users pay $0.10 in ZRO tokens to claim a new token. Accepted donation forms are USDC, USDT, and…
. This unique model, which essentially eschews the traditional sales-based model to create more of a community-based distribution method, is looking to raise up to $18.5 million. 100% of the proceeds from this go to the Protocol Guild, which is Ethereum Collective developer.
LayerZero’s approach is to manage ZRO token claims via “Proof of Donation” launched on June 2 through September 20. Since developers are entrenched at the heart of the blockchain ecosystem, LayerZero has chosen to donate through the claim process and contribute to supporting Ethereum developers who bring such value to our shared space.
Community response and broader impact
While for the betterment of the community and continuous innovation within the Ethereum ecosystem, the response from the cryptocurrency community is arguably mixed. Many believe that the compulsory donation represents a deviation from the usual spirit of airdrops, which are usually understood as patchwork rather than taxation.
These moves surprised some leaders in space. Like Yearn Finance’s Banteg, who wonders why an initiative like the Protocol Guild would get any funding through this method for a similar reason to support almost all other projects in the overall data space.
Criticisms aside, this move by LayerZero signals a larger pattern of incorporating philanthropy as part of typical cryptocurrency operations, and will likely become a model for how projects can give back to the broader ecosystem as they seek to reach broader distribution goals.
The funds raised will have a significant positive impact on the Protocol Guild, as donations will be awarded over a period of four years, to support Ethereum core developers in the long term.
Forward-looking strategies
LayerZero’s move to ask for a donation in order to claim tokens is a bold move, and a first step in aligning cryptoeconomic activity with the greater good and community benefits. This relates to the evolution in the space from purely technical innovation to considering the impact their work has on those who live around them, as a result.
The institution confirmed that approximately 85 million ZRO tokens (8.5% of the total initial supply in circulation) can be claimed by authorized users. The move is one element of a multi-pronged approach to returning 38.3% of ZRO tokens to the community with a significant percentage allocated to planned future initiatives.
