Weekly Project Updates: The zkSync airdrop allocation has sparked controversy, LayerZero Airdrop Imminent, Curve Founder’s Nearly 100 Million CRV Liquidated, etc
1. The zkSync airdrop allocation has sparked controversy link
ZKsync will conduct a one-time airdrop next Monday to 695,232 eligible wallets, distributing a total of 3.675 billion ZK tokens, which represents 17.5% of the total supply of 21 billion ZK tokens. Additionally, 49.1% of the token supply will be allocated through the ecosystem plan, with 17.2% going to investors and 16.1% to the Matter Labs team. The airdrop eligibility and distribution are based on a snapshot of ZKsync Era and ZKsync Lite activities taken at 00:00 UTC on March 24, 2024, marking the first anniversary of the ZKsync Era mainnet launch.
The airdrop is based on a points system, where wallets earn points through certain actions, such as interacting with 10 smart contracts on ZKsync Era, providing liquidity to DeFi protocols, and trading more than 10 types of ERC-20 tokens. Points can also be earned through activities on ZKsync Lite, like donating to Gitcoin rounds or trading in the three months before the ZKsync Era mainnet launch. After points are allocated, each wallet receives a distribution based on assets bridged to ZKSync Era. Addresses can receive double rewards based on their activity on both ZKsync and the Ethereum mainnet. Addresses with fewer than 450 ZK tokens will have their tokens reallocated to the pool, while addresses with more than 100,000 tokens will have their excess tokens reclaimed. Ultimately, the minimum distribution per wallet is 917 ZK tokens.
Dissatisfied users are widely criticizing the ZKsync airdrop. Currently, Bybit is the only major exchange to announce listing the token, which has sparked thousands of complaints. OKX CEO Star asked on Twitter why many influential figures in the crypto community are accusing ZKsync of being a scam, suggesting the disappointment might stem from unmet community expectations. Comments mainly criticize insiders and the project for receiving too many tokens. Binance co-founder He Yi mentioned on Twitter Space that the core issue is many studios lost money by trying to exploit the airdrop system. It’s still uncertain whether Binance and OKX will list the token. Justin Sun also questioned on Twitter whether to boycott zkSync.
In response to recent feedback regarding the airdrop distribution, ZK Nation tweeted that their airdrop design was unconventional and had some flaws. Many users were frustrated by receiving fewer tokens than expected. The team spent several days reviewing reports to eliminate any possible errors and found no major issues. However, they acknowledged insufficient communication about the airdrop design details and are preparing a more systematic approach to collect and prioritize community feedback. Numerous ecosystem projects have pledged to allocate their tokens to the community, and nearly 50% of the total token supply remains reserved for the community.
2. LayerZero Foundation to Announce Major News on June 20 link
On June 15, LayerZero announced the establishment of a foundation and released a tweet with an image showing the date “06.20.2024.” LayerZero had completed an airdrop snapshot on May 1 and plans to conduct the airdrop this month.
LayerZero Labs CEO Bryan Pellegrino shared some preliminary details about the upcoming ZRO token airdrop: the total supply is 1 billion tokens, with 23.8% (excluding foundation, growth, etc.) directly allocated to the community and builders. Of this, 8.5% (5% core, 3% RFP, 0.5% community pool) will be distributed on the first day. The majority of the remaining tokens will be distributed over the next 36 months, with additional retrospective allocations every 12 months, along with some forward-looking RFPs for builders.
Additionally, Bryan Pellegrino tweeted that almost 200 approved witch reports (valid and partially valid) are in the final stages. The goal is to publish a complete sybil list (Chaos + Nansen + all approved bounty hunter clusters) for public review over the weekend. There will be no formal appeal process for each address, but there will be a 24-hour period for the public to review and report any flawed or missing clusters. If verified, these clusters will be removed.
3. OP Mainnet Implements Fault Proof System link
OP Labs has announced the successful implementation of a fault-proof system on the OP mainnet, enabling users to withdraw ETH and ERC-20 tokens without the need for a trusted third party. In the future, this fault-proof functionality will be extended to other chains based on the OP Stack, such as Base, Metal, Mode, and Zora. The Optimism Security Council can intervene to ensure safety in the event of system failures and has the authority to reset withdrawal requests.
4. Polygon Launches 1 Billion POL Community Grant Program link
Polygon Labs has announced the launch of the Community Grant Program (CGP) involving 1 billion POL tokens. In the first season, 35 million MATIC will be allocated to projects built on Polygon, with applications opening today and closing on August 31, 2024. Polygon Labs stated that a community treasury has been established based on community consensus, which will unlock 1 billion POL over the next 10 years, approximately 100 million POL annually, all dedicated to builders.
5. Curve Founder’s $140 Million CRV Holdings Largely Liquidated link
On June 13th, Curve founder Michael Egorov’s $140 million CRV loan position began liquidation due to the falling token price. Last July, Egorov faced a similar liquidation crisis caused by an external hacker attack, which led the crypto market to rally in support of Curve. Numerous institutions and notable figures, including Justin Sun, Du Jun, and Mai Gang, provided financial assistance.
As of the latest report, Michael Egorov’s CRV loan position has seen approximately 100 million CRV (valued at $27 million) liquidated. His main address still holds 39.35 million CRV as collateral for a loan of 540,000 stablecoins. This portion, having a health rate above 1, is currently safe from further liquidation.
On June 13th, the balance of CRV across centralized exchanges surged by 78% to 624 million CRV, a historic high. This spike is likely due to the liquidated positions being transferred to exchanges for further processing, alongside possible panic selling.
A spokesperson for Michael Egorov stated that a vulnerability in UwU Lend on Monday triggered a series of events leading to massive liquidations at Curve on Thursday. “On April 15th, UwU Lend deployed vulnerable code for new (sUSDe) markets, which were not isolated, thus exposing the entire platform to risk. UwU was hacked, and as part of the cash-out process, the hacker deposited the stolen CRV into LlamaLend before disappearing with the funds, leaving the debt within the system.”
6. Uniswap Labs Announces Acquisition of Survival Game “Crypto: The Game” link
According to Fortune, Uniswap Labs has announced the acquisition of the popular survival game Crypto: The Game (CTG). The acquisition amount was not disclosed but includes a mix of cash, tokens, and equity. As part of the acquisition, CTG founders Dylan Abruscato, Tyler Cagle, and Bryan Lee will join Uniswap. The two companies are currently co-developing the third season of the game while exploring new interactive consumer crypto experiences.
7. SushiSwap: Sushi DAO to Continue Operating, Will Not Be Replaced or Dissolved link
SushiSwap has announced that despite recent changes causing some confusion, several key aspects remain unchanged since the launch of Sushi Labs. Firstly, Sushi DAO will neither be replaced nor dissolved and will continue to function, playing a role in governance and decision-making. The Sushi Protocol remains permissionless, and revenue will still be allocated to Sushi Bar, with xSUSHI holders entitled to a share of the platform’s transaction fees. Sushi Labs will focus on building better products for users more quickly. Additionally, Sushi will adopt a new governance structure with a council system comprising the Sushi Senior Kitchen, Treasury Committee, Grants Committee, and Ambassadors Committee, each focusing on specific areas.
8. MetaMask Introducing New Pooled Staking Feature link
MetaMask is rolling out a new Pooled Staking feature, allowing users to stake small amounts of ETH and earn staking rewards. Despite MetaMask charging a 15% staking fee, which is higher than the market leader Lido’s 10%, Consensys product manager Matthieu Saint Olive emphasizes that users are more concerned about the actual rewards received and the security of the solution rather than the vendor’s fees. Previously, only users holding 32 ETH could stake through MetaMask.
9. Arthur Hayes Joins Ethereum Data Infrastructure Covalent as Strategic Advisor link
BitMEX and Maelstrom co-founder Arthur Hayes has joined Ethereum data infrastructure Covalent as a strategic advisor, assisting in the development of Ethereum’s “time machine”. This innovative modular data infrastructure solution aims to achieve long-term data availability and decentralized AI. The system is capable of storing and re-executing temporary blob data, ensuring the secure preservation of Ethereum’s historical records within Covalent.
10. UniSat Reaches Record High of 9.6k Daily Transaction Users link
On June 8th, UniSat reached a historic milestone with 9.6k active trading users. Concurrently, UniSat’s market share on the Ordinals platform has surged back to over 40% since late September last year. Recently, UniSat conducted an airdrop of the five-byte BRC-20 PIZZA tokens to its platform users, triggering the PIZZA wealth effect and attracting renewed user inflows and growth.
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