TLDR
- A layer-2 scaling project for Ethereum called zkSync found itself in the crosshairs of criticism regarding its strategy for distributing ZK tokens during the airdrop.
- Many in the community argue that the airdrop did not have robust anti-Sybil mechanisms in place, making it a target for exploitation.
- This controversy has triggered a notable decline in the total value locked (TVL) within the zkSync ecosystem.
- zkSync intends to allocate 17.5% of its entire pool of 21 billion ZK tokens to early adopters through this singular airdrop event.
- Even though zkSync has addressed some concerns, a portion of the user base remains unhappy with how the tokens were allocated and the criteria for eligibility.
zkSync, renowned for its zero-knowledge proof technology to enhance Ethereum's scalability, faced backlash once the airdrop details emerged. of its ZK token airdrop.
Aiming to acknowledge early contributors from their Mainnet launch in 2023, zkSync faced scrutiny from experts and competitors for potentially overlooking Sybil attack precautions and having unbalanced token distribution.
Mudit Gupta, head of cybersecurity at Polygon, a competing layer-2 platform, described zkSync's airdrop as possibly the 'most easily exploited' in history, citing near non-existent Sybil filtering.
zkSync airdrop is out.
Arguably one of the easiest and most exploited airdrops by far.
Sybil filtering measures appear almost negligible from my perspective.
It was straightforward for anyone aware of the criteria to maximize their returns from this airdrop.
It highlights the importance of what LayerZero is pursuing in terms of Sybil filtering innovations.
— Mudit Gupta (@Mudit__Gupta) June 11, 2024
This view was echoed by Adam Cochran of Cinneamhain Ventures, who remarked that the criteria of the airdrop were straightforward to miss for legitimate users, while opportunistic farmers could easily meet them.
I'm fond of the folks at zkSync, but frankly, the airdrop was inadequately thought out regarding Sybil vulnerability.
Those conditions were challenging for genuine users yet seemed tailor-made for farmers, lacking any real anti-Sybil framework.
Authentic participants could seem to use only a couple of dApps or just a few tokens on the platform... pic.twitter.com/PiqprIbKJ3
— Adam Cochran (adamscochran.eth) (@adamscochran) June 11, 2024
The controversy surrounding the airdrop This situation has led to a substantial reduction in zkSync's total value locked.
According to DeFiLlama, Post-announcement of the token allocation specifics, zkSync witnessed a plummet in TVL from nearly $200 million to approximately $128 million, illustrating a drop in user confidence due to perceived biases in distribution methods.
zkSync declared that on June 17, 17.5% of its 21 billion ZK token supply would be apportioned among early users through a one-off airdrop.
In the breakdown, 89% of the distribution will go to those actively transacting on the network, while 11% is meant for developers and researchers. However, this hasn't fully addressed the dissatisfaction some users feel about their rewards.
zkSync has made it clear that it stands by its values of transparency and community input, opening the floor for more feedback to align with user expectations in future endeavors.
According to zkSync, their token distribution strategy, which reserves 16.1% for the team, 17.2% for investors, and the remainder for ecosystem expansion, aims to facilitate ecosystem growth as more join the network.
As the date approaches for the debut of the ZK token, the discussion regarding the fairness and adequacy of zkSync’s airdrop remains active.
Some participants forecast the token could hit the $1 mark at launch, even as it appears on pre-listing platforms. Whales Market show the price trading at around $0.34.
