Ethereum scaling solution Scroll launched its native token, SCR, amidst much fanfare, but the community immediately reacted with backlash over the amount allocated.
Ethereum scaling solution Scroll launched its native token, SCR, amidst much fanfare, but the community immediately reacted with backlash over the amount allocated.
This highly anticipated token distribution released 55 million SCR tokens, representing 5.5% of the total supply. Following this, social media has raised opinions regarding the sustainability of crypto airdrop models. The airdrop was aimed at the early adopter and active participant in the Scroll ecosystem. Of this, 40 million were kept exclusively for users who had collected more than 200 Scroll Marks through activity on the network.
Scroll has also seen quite a significant amount of backlash from over-expectant community members. Notable crypto influencer DYOR.eth expressed his disappointment on social media and declared the liquidation of his tokens to mark an immediate exit from the project. The sentiment cascaded across the crypto community, with several loud voices deeming the event one of the most disappointing token allocations they've witnessed in recent times.
This situation signals a growing problem of airdrop farming through the creation of many wallets or the artificial inflation of user activities to maximize potential rewards. This phenomenon makes it hard to distribute tokens fairly to actual community members.
The market’s response to this launch was equally challenging, as the value of SCR slumped over 17% after the distribution to trade finally at $1.15, according to data from CoinMarketCap.
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