LayerZero, an omnichain interoperability protocol, recently announced the completion of the first snapshot for its highly awaited airdrop of the ZRO token.
This announcement was made via a post on X by LayerZero Labs, which promises more updates soon.
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ZRO was introduced in September 2023 on the HyperLiquid perpetual futures decentralized exchange (DEX) as the first Hyperp—a trading instrument that is similar to perpetual contracts but does not require an external spot or index price oracle.
At the time of writing, the ZRO Hyperp is trading at $8.5.
Despite the anticipation building around the airdrop, LayerZero has yet to release more detailed information.
A previous announcement post on December 7, 2023, indicated that the official launch of the ZRO token is scheduled for early 2024. The development team emphasized their commitment to fair distribution of the token, stating:
LayerZero has always been built with the ability to have a native token within the protocol <...>. We’ll state now in no uncertain terms that there will be a LayerZero token. Its distribution is something we’re committed to getting right and expect it to happen within the first half of 2024.
Airdrops are a common strategy among decentralized finance (DeFi) protocols to drive engagement by rewarding early users with new crypto.
However, the effectiveness of airdrops in encouraging long-term protocol loyalty is a matter of ongoing debate within the DeFi community. That is because they often attract airdrop hunters—people who use multiple wallets to collect and quickly sell the tokens, potentially destabilizing prices.
For example, a developer from Yearn.finance, Banteg, noted in February that the airdrop eligibility list for Starknet's airdrop of the STRK token was predominantly filled with airdrop hunters.
Nonetheless, as LayerZero progresses toward its token launch, the potential impact of its airdrop strategy on user loyalty and token value remains an important consideration for the future of this protocol.
