LayerZero, drew criticism with the donation issue: 22% drop!

LayerZero showed a 15.15% increase shortly after its release to the market. However, investors debated whether the donation mechanism was a tax excuse, causing the token to experience a 22% decline.

LayerZero’s newly launched token, LayerZero (ZRO), has fallen 17% since its controversy over the donation criterion for claiming tokens, which some have likened to a “tax.” Some investors disagree with the criticism and think that the mechanism could be a good step towards solving the problems with the recent airdrops.

It was likened to tax, and the decline became inevitable

After its release on June 20, ZRO rose by 15.15% to $4.71 within just 20 minutes, followed by a 22% drop within two hours. This development brought about a unique debate with ZRO requiring users who want to claim tokens to donate a small amount of money per ZRO.

“To make a ZRO request, users must donate $0.10 in USDC, USDT, or local ETH per ZRO. This small donation goes directly to the Protocol Guild,” wrote LayerZero in their June 20th post.

Users claim that paying taxes changes the nature of the airdrop and makes it more like an ICO, which has sparked a wave of backlash from the crypto community. Users flocked to LayerZero’s post with comments like ‘Is this a joke?’ and ‘Are you willing to pay the price?’.

LayerZero, stating that ZRO does not do airdrops

LayerZero is determined that there will be no airdrop at the token’s launch.

In a statement dated June 20, LayerZero argued that airdrops no longer contribute to fair distribution, community building, and protocol health goals.

The main reason for this is the increase in airdrop farming and Sybil assets, resulting in “very little or no interest” from people who are responsible for the long-term success of the project; this refers to organizations that create and use a large number of wallets for airdrop farming.

LayerZero co-founder Bryan Pellegrino apparently spent his day defending the token, reiterating that no one is entitled to buy tokens and urging users to refrain from requesting them if they do not wish to donate.

“There is no mandatory donation, if you don’t want to donate… just don’t ask for it. It’s not something you own, it’s something offered,” he said.

By the way, some members of the crypto community agree that ZRO’s donation request mechanism could be a step in the right direction for future airdrops.

This article does not contain investment advice or recommendations. Every investment and trading operation involves risk, and readers should conduct their own research when making decisions.