Binance to Distribute $2M Worth of ZK Tokens to Appease Users Frustrated With Airdrop

On social media, accounts that allegedly belong to longtime users of ZKsync Era have slammed the blockchain's parent company, Matter Labs, for leaving

Binance, the world’s largest crypto exchange, will distribute 10.5 million ZK tokens among certain users who were excluded from an airdrop by blockchain ZKsync Era.

Binance said on Sunday that the tokens will be distributed on June 25. Those users had to initiate 50 transactions or more on ZKsync Era and between February 2023 and March 2024.

The exchange said it will be distributing the tokens “in light of the ongoing concerns from the community.”

ZKsync Era, a layer 2 blockchain, is one of the largest Ethereum-based blockchains. Users have transferred over $770 million in crypto to the blockchain, according to L2BEAT, and about $128 million in its DeFi ecosystem, according to DefiLlama data.

ZKsync Era is among the biggest layer 2 blockchains. L2BEAT data shows that users have transferred more than $770 million in crypto to the blockchain.

Airdrops are a common way for Web3 projects to onboard users and reward early adopters. But the distribution of these tokens can be a minefield.

Many crypto-native companies, from the get-go, promise to cede control of their product to its users. Tokens like ZK, for instance, grant membership and voting power in these digital cooperatives.

But the distribution of these tokens can be fraught. Companies have been criticised for doling out an outsize tranche of tokens to employees and investors, leaving little for longtime users who, in turn, expect a reward for having taken a gamble by putting their crypto into untested applications.

Moreover, companies can also unintentionally exclude real users in their attempt to filter out the “bots” that mimic user behaviour in order to nab a slice of newly issued tokens.

When Matter Labs detailed the airdrop, the company boasted that it had set aside 17.5% of ZK tokens for about 695,000 longtime users, in what it called “the largest distribution of tokens to users amongst major rollups.”

But it was quickly forced to defend itself after a flurry of complaints from alleged users who were irate that they weren’t eligible for the airdrop or that they received a paltry number of ZK tokens when other, seemingly less committed users got more.

While acknowledging the “unconventional” design of its airdrop, Matter Labs said it was “proud” of the “reasonable tradeoffs” it had made to ensure that tokens went to real users.

“In 2024, airdrops are extremely challenging,” the company wrote on X. “Sophisticated industrial farms operate millions of bots indistinguishable from real people in behavioural patterns. This renders traditional activity-based airdrops completely useless for building resilient and sustainable communities.”

There are 21 billion ZK tokens in total, with one-third reserved for investors and employees of Matter Labs and the ZKsync Foundation.

Meanwhile, 19.9% of the tokens will go to the ZKsync Foundation and 29.3% have been set aside for the treasury of the ZKsync Token Assembly, the digital cooperative that will control ZKsync Era. The remaining 17.5% had been set aside for Monday’s airdrop.

As of Monday afternoon, almost three-fourths of the tokens in the airdrop had been claimed.

News source：https://www.kdj.com/cryptocurrencies-news/articles/binance-distribute-m-worth-zk-tokens-appease-users-frustrated-airdrop.html

The above is the detailed content of Binance to Distribute $2M Worth of ZK Tokens to Appease Users Frustrated With Airdrop. For more information, please follow other related articles on the PHP Chinese website!