Token

Element

ZKsync

Ethereum’s Zero-Knowledge (ZK) Layer-2 scaling solution, zkSync, is facing backlash from the crypto community after its recent ZK token airdrop announcement. Community members have expressed concerns about the lack of anti-Sybil filtering and the “unfair” token distribution. 
<h2 style="font-weight: 400;" id="zksync-faces-backlash">ZkSync Faces Backlash</h2> 
On Tuesday, zkSync announced the upcoming airdrop of its ZK token and the distribution plan. According to the announcement, 17.5% of ZK’s 21 billion token supply will be airdropped to 695,000 eligible <a href="https://bitcoinist.com/shiba-inu-wallet-scam/" target="_blank" rel="noopener ">wallets</a> on June 17. 
Additionally, 33.3% of the token’s supply would be distributed between the project’s team and <a href="https://bitcoinist.com/crypto-chaos-70-of-dead-korean-exchanges-leave-investors-high-and-dry/" target="_blank" rel="noopener ">investors</a>. The allocation was meant to reward early users and long-time supporters among zkSync’s community. 
<img loading="lazy" decoding="async" class="size-large wp-image-305227 aligncenter" src="https://bitcoinist.com/wp-content/uploads/2024/06/Captura-de-Pantalla-2024-06-12-a-las-2.30.07-p.-m.png?w=715&amp;resize=715%2C660" alt="zksync" width="715" height="660" srcset="https://bitcoinist.com/wp-content/uploads/2024/06/Captura-de-Pantalla-2024-06-12-a-las-2.30.07-p.-m.png?w=794 794w, https://bitcoinist.com/wp-content/uploads/2024/06/Captura-de-Pantalla-2024-06-12-a-las-2.30.07-p.-m.png?w=455 455w, https://bitcoinist.com/wp-content/uploads/2024/06/Captura-de-Pantalla-2024-06-12-a-las-2.30.07-p.-m.png?w=768 768w, https://bitcoinist.com/wp-content/uploads/2024/06/Captura-de-Pantalla-2024-06-12-a-las-2.30.07-p.-m.png?w=715&amp;resize=715%2C660 715w, https://bitcoinist.com/wp-content/uploads/2024/06/Captura-de-Pantalla-2024-06-12-a-las-2.30.07-p.-m.png?w=750 750w" sizes="(max-width: 715px) 100vw, 715px" data-recalc-dims="1"> 
Per the post, eligible users could receive up to 100,000 ZK tokens depending on the criteria they had met before the March 25 snapshot. However, the project faced criticism after users started to check their allocation. 
Online reports revealed that some community members were not content with their rewards. Despite being active long-term users, many investors claimed to have received a lower token allocation than others with less activity. 
Similarly, several users complained of not being eligible for the airdrop despite their volume and transaction history and meeting the criteria. One X user <a href="https://x.com/rahim1370219/status/1800452526791381131" target="_blank" rel="noopener nofollow">shared</a> being in the top 0.04% of wallets and receiving only 1,023 ZK tokens, while wallets with significantly less activity registered after the snapshot got the maximum allocation. 
Various top-ranking projects built on zkSync have expressed disappointment after not being included. NFT project zkApes and NFT marketplace Element <a href="https://x.com/zk_apes/status/1800797736352293317" target="_blank" rel="noopener nofollow">shared</a> they had not received any airdrops despite generating between $15-$20 million in gas fees for the network. 
Moreover, zkApes, Element NFT, and other projects have formed a coalition to “keep the pressure” on zkSync’s team and negotiate a token allocation, which would be distributed between their communities. Critics expressed their desire for “transparency and fairness.” 
<h2 style="font-weight: 400;" id="a-lack-of-anti-sybil-filtering">A Lack Of Anti-Sybil Filtering?</h2> 
Mudit Gupta, Chief Information Security Officer (CISO) at Polygon Labs, <a href="https://x.com/Mudit__Gupta/status/1800450339298271236" target="_blank" rel="noopener nofollow">called</a> the situation the “most farmable and farmed airdrop ever.” Gupta highlighted the lack of anti-Sybil filtering and claimed that “anyone who knew the criteria could’ve easily farmed the shit out of it.” 
Similarly, Adam Cochran, partner at Cinneamhain Ventures, <a href="https://x.com/adamscochran/status/1800521951384879469" target="_blank" rel="noopener nofollow">considers</a> the airdrop not well-planed from a Sybil perspective. He pointed out that the criteria were “easy to not hit as a real user, and easy to hit as a farmer.” 
Many users believed that the controversial criteria were not zkSync’s responsibility but that the crypto analytic firm Nansen was at fault. However, Nansen clarified they had not been involved with the ZK airdrop. 
In an X post, the firm <a href="https://x.com/nansen_ai/status/1800559648615071754" target="_blank" rel="noopener nofollow">stated</a> that they provided data to Matter Labs, zkSync’s developing company, in the past. The information provided included data about the wallets of some whales and known scammers. Additionally, they explained they did not do any anti-Sybiling or give any advice on the token allocation. 
It’s worth noting that the project decided not to use any anti-Sybil criteria for the airdrop as it was considered an “incomplete approach.” 
<blockquote> 
 (…) It’s tempting to eliminate bot swarms by applying strict sybil criteria. But Sybil detection often cuts out real users with arbitrary filters. This was an incomplete approach for the ZK airdrop. The ZK airdrop focuses on identifying real users using a human-first approach. 
</blockquote> 
According to online reports, Sybil wallets are estimated to receive around $135 million ZK tokens from the <a href="https://bitcoinist.com/trump-crypto-fortune-25-million-memecoin-airdrop/" target="_blank" rel="noopener ">airdrop</a>, based on an initial list provided by LayerZero Labs. Since then, the Sybil list has been discarded by Bryan Pellegrino, CEO of LayerZero. 
<img loading="lazy" decoding="async" class="size-large wp-image-305225 aligncenter" src="https://bitcoinist.com/wp-content/uploads/2024/06/ETHUSDT_2024-06-12_14-28-38.png?w=980&amp;resize=980%2C551" alt="eth, ethusdt, Ethereum, zksync" width="980" height="551" srcset="https://bitcoinist.com/wp-content/uploads/2024/06/ETHUSDT_2024-06-12_14-28-38.png?w=1008 1008w, https://bitcoinist.com/wp-content/uploads/2024/06/ETHUSDT_2024-06-12_14-28-38.png?w=640 640w, https://bitcoinist.com/wp-content/uploads/2024/06/ETHUSDT_2024-06-12_14-28-38.png?w=768 768w, https://bitcoinist.com/wp-content/uploads/2024/06/ETHUSDT_2024-06-12_14-28-38.png?w=980&amp;resize=980%2C551 980w, https://bitcoinist.com/wp-content/uploads/2024/06/ETHUSDT_2024-06-12_14-28-38.png?w=750 750w" sizes="(max-width: 980px) 100vw, 980px" data-recalc-dims="1">

ZkSync Faces Backlash Amid Token Airdrop Controversy

Table of Contents

Bitcoinist

Other articles published on Jun 13, 2024

MicroStrategy to Redeem $650M of its Convertible Notes in July 2024

Taiwan Announces Launch of Crypto Association Amid Regulatory Developments

Memecoins Could Be The Cornerstone of Crypto Space; Here Is Why

Meme Coin Price Predictions: FLOKI Lags, PEPE Slows – Where Are We Headed?

Nexura Studio, the Crypto Agency that’s Leading the Way in Web3 Marketing Innovation

Cardano Founder Charles Hoskinson Reveals Next Steps for ADA Governance

Join our free newsletter for daily crypto updates!