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News

zkSync Token Airdrop Is Now Causing Controversy With Unequal Allocation to ZeroLend

June 18, 2024 - Around 2 mins mins to read

Key Points:

  • ZeroLend was omitted from the zkSync token airdrop despite meeting eligibility criteria and holding significant on-chain activity.
  • ZK Nation countered that 30% of ZeroLend users received significant airdrop allocations.
Multi-chain lending protocol ZeroLend has publicly protested its exclusion from the zkSync token airdrop recipient list.
zkSync Token Airdrop Is Now Causing Controversy With Unequal Allocation to ZeroLend

Read more: Top 10 DeFi Projects On ZkSync Era

ZeroLend Says They Are Excluded from zkSync Token Airdrop

In a post on X, ZeroLend, the largest lending protocol and the second-largest decentralized application (dApp) at the time of the snapshot, voiced its discontent.

ZeroLend argues that it meets all the eligibility criteria outlined in zkSync’s documentation. Despite holding over 10% of zkSync’s total value locked (TVL) and dominating on-chain lending activity with an 81% share, ZeroLend was omitted from the zkSync token airdrop.

“zkSync’s decision to overlook our contributions and exclude ZeroLend from the airdrop raises serious questions about the fairness and decentralization of their process,” ZeroLend stated. The protocol believes that this will create an impact on its community, and other projects with smaller footprints received considerable incentives.

In response, zkSync community ZK Nation clarified that approximately 155,000 ZeroLend users, accounting for 30% of its user base, did receive a significant allocation in the zkSync token airdrop. It also underscored the value and recognition of the ZeroLend community within the zkSync ecosystem.

Ongoing Debate Over Airdrop Fairness

ZeroLend countered that zkSync considered their deployment of a native token on another chain as disloyal. ZeroLend claimed they were forced to diversify due to insufficient support from zkSync’s marketing and business development teams. They argued the debate should focus on their eligibility, not the size of the allocation.

ZK Nation maintains that even users meeting all seven criteria might not receive distributions if their average holdings over time were insufficient or failed to qualify for any multiplier bonuses. The zkSync token airdrop, mainly focused on the ZKsync Era chain, allocates 89% of tokens to users who meet the criteria and 11% to contributors. Allocation factors include asset holding and blockchain history, with a time-weighted average balance over 12 months also considered.

The dispute remains unresolved, with both sides standing firm in their positions on the fairness and transparency of the airdrop process.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

ZeroLend

ZK

ZK Nation

Zksync

zkSync Era

zkSync Token Airdrop

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Author

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.
News

zkSync Token Airdrop Is Now Causing Controversy With Unequal Allocation to ZeroLend

Key Points:

  • ZeroLend was omitted from the zkSync token airdrop despite meeting eligibility criteria and holding significant on-chain activity.
  • ZK Nation countered that 30% of ZeroLend users received significant airdrop allocations.
Multi-chain lending protocol ZeroLend has publicly protested its exclusion from the zkSync token airdrop recipient list.
zkSync Token Airdrop Is Now Causing Controversy With Unequal Allocation to ZeroLend

Read more: Top 10 DeFi Projects On ZkSync Era

ZeroLend Says They Are Excluded from zkSync Token Airdrop

In a post on X, ZeroLend, the largest lending protocol and the second-largest decentralized application (dApp) at the time of the snapshot, voiced its discontent.

ZeroLend argues that it meets all the eligibility criteria outlined in zkSync’s documentation. Despite holding over 10% of zkSync’s total value locked (TVL) and dominating on-chain lending activity with an 81% share, ZeroLend was omitted from the zkSync token airdrop.

“zkSync’s decision to overlook our contributions and exclude ZeroLend from the airdrop raises serious questions about the fairness and decentralization of their process,” ZeroLend stated. The protocol believes that this will create an impact on its community, and other projects with smaller footprints received considerable incentives.

In response, zkSync community ZK Nation clarified that approximately 155,000 ZeroLend users, accounting for 30% of its user base, did receive a significant allocation in the zkSync token airdrop. It also underscored the value and recognition of the ZeroLend community within the zkSync ecosystem.

Ongoing Debate Over Airdrop Fairness

ZeroLend countered that zkSync considered their deployment of a native token on another chain as disloyal. ZeroLend claimed they were forced to diversify due to insufficient support from zkSync’s marketing and business development teams. They argued the debate should focus on their eligibility, not the size of the allocation.

ZK Nation maintains that even users meeting all seven criteria might not receive distributions if their average holdings over time were insufficient or failed to qualify for any multiplier bonuses. The zkSync token airdrop, mainly focused on the ZKsync Era chain, allocates 89% of tokens to users who meet the criteria and 11% to contributors. Allocation factors include asset holding and blockchain history, with a time-weighted average balance over 12 months also considered.

The dispute remains unresolved, with both sides standing firm in their positions on the fairness and transparency of the airdrop process.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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