Key Takeaways
LayerZero announced the completion of the first snapshot for its airdrop of the ZRO token, with more details expected soon;
ZRO was first introduced as a Hyperp on the HyperLiquid DEX in September 2023;
The effectiveness of airdrops as a DeFi engagement tool is debated, as they often attract airdrop hunters.
LayerZero, an omnichain interoperability protocol, recently announced the completion of the first snapshot for its highly awaited airdrop of the ZRO token.
This announcement was made via a post on X by LayerZero Labs, which promises more updates soon.
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ZRO was introduced in September 2023 on the HyperLiquid perpetual futures decentralized exchange (DEX) as the first Hyperp—a trading instrument that is similar to perpetual contracts but does not require an external spot or index price oracle.
At the time of writing, the ZRO Hyperp is trading at $8.5.
Despite the anticipation building around the airdrop, LayerZero has yet to release more detailed information.
A previous announcement post on December 7, 2023, indicated that the official launch of the ZRO token is scheduled for early 2024. The development team emphasized their commitment to fair distribution of the token, stating:
LayerZero has always been built with the ability to have a native token within the protocol <…>. We’ll state now in no uncertain terms that there will be a LayerZero token. Its distribution is something we’re committed to getting right and expect it to happen within the first half of 2024.
Airdrops are a common strategy among decentralized finance (DeFi) protocols to drive engagement by rewarding early users with new crypto.
However, the effectiveness of airdrops in encouraging long-term protocol loyalty is a matter of ongoing debate within the DeFi community. That is because they often attract airdrop hunters—people who use multiple wallets to collect and quickly sell the tokens, potentially destabilizing prices.
For example, a developer from Yearn.finance, Banteg, noted in February that the airdrop eligibility list for Starknet’s airdrop of the STRK token was predominantly filled with airdrop hunters.
Nonetheless, as LayerZero progresses toward its token launch, the potential impact of its airdrop strategy on user loyalty and token value remains an important consideration for the future of this protocol.
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.
