The omnichain protocol LayerZero is asking users claiming the ZRO airdrop to pay for token claims through a Proof-of-Donation mechanism.
Today LayerZero is introducing a new claiming mechanism called Proof-of-Donation, which will result in ~$18.5 million donated to @ProtocolGuild, a collective funding mechanism for Ethereum developers.
Protocol Guild and Ethereum’s core developers have been fundamental to… pic.twitter.com/YPN7wzsqbJ
— LayerZero Foundation (@LayerZero_Fndn) June 20, 2024
According to the LayerZero Foundation, participants must donate $0.1 in USDC, USDT, or ETH for each governance token. The token claim is open from June 20 to September 20.
The funds raised will go to the Protocol Guild, a structure for funding Ethereum core developers. It is expected to raise up to $18.5 million, with LayerZero Foundation contributing an additional $10 million.
“By donating to the Protocol Guild, users demonstrate a long-term commitment to the LayerZero protocol and support for the future of the crypto industry,” the statement said.
The community has met the project’s initiative of mandatory donations with mixed reactions. Yearn.Finance developer known as banteg compared it to “glorified ICOs.”
mandatory donations sound more like a glorified ico.
and stop bulk funding protocol guild, it’s been wildly successful at attracting funds, find other smaller initiatives to support.
— banteg (@bantg) June 20, 2024
According to him, the Protocol Guild is quite successful in raising funds and does not require such methods.
During the airdrop that began on June 19, LayerZero will distribute 85 million ZRO or 8.5% of the total issuance of 1 billion coins among users. CEO of LayerZero Labs, Bryan Pellegrino, stated that 1.28 million wallets are eligible for the distribution.
There are 250 million tokens in circulation. According to CoinGecko, the price of ZRO has fallen by 18.6% in the last 24 hours, trading around $3.6.
Amid the airdrop, several major exchanges, including Binance, have announced preparations for listing ZRO.