LayerZero's ZRO Token Launch Skyrockets Arbitrum's Revenue to $3.43M in a Day
Summary:
LayerZero's ZRO token launch on June 20 resulted in a significant spike in fees on Arbitrum and broke the blockchain's revenue record with $3.43 million in a day - a 16,680% rise from the previous day. The launch was criticized due to its required "donation" method, which increased the average gas fees on the blockchain, leading to a daily profit of $3.29 million for Arbitrum. LayerZero maintains that their launch is not an airdrop, and the resulting revenue marked Arbitrum's biggest earning day since December 14. However, the ZRO token's value has since dropped 23%.
When LayerZero released its token on June 20, there was a skyrocketing increase in fees on Arbitrum, breaking the blockchain's record with a daily revenue surge to $3.43 million. This is a staggering 16,680% jump from the previous day's revenue. The required "donation" process of LayerZero's new ZRO token launch incited backlash as it obligated users to expend a minimal sum with each claimed token. This procedure inflated the average gas fees on the blockchain, surging them to 89 cents - a stark increase from the regular below-1-cent fee. Consequently, revenues shot up, reaching an all-time high of $3.29 million for the network, based on compiled data from Dune Analytics and DefiLlama.
LayerZero's launched its ZRO token with a condition that participants donate a minor sum for each token. "ZRO claimants must donate $0.10 in USDC, USDT, or native ETH per ZRO,” stated LayerZero in its June 20 post, further clarifying that donations would contribute to the Protocol Guild, a funding stream for Ethereum developers. LayerZero has maintained that the style of its token launch is unprecedented and should not be referred to as an 'airdrop', arguing that such methods do not align with the objectives of fair distribution, community enhancement, or protocol health. LayerZero believes that potential holders may have a fleeting interest in the project over the long term.
This peak revenue day for Arbitrum follows its previous record of $2.13 million earnings on Dec. 14, the day before it temporarily shutdown due to an influx of network inscriptions. Inscriptions, a data format that can hold bulky data packages beyond basic transaction data, for instance, images, make them pricier due to their volume. Hence, the substantial cost affects Arbitrum, which could only manage a profit of $414,000 on Dec 14 as a result of the high fees involved in posting and verifying the bulky inscription data on Ethereum.
ZRO's value has significantly dropped, with a 23% decrease in the last day to $3.42, down from its apex of $4.79, as per CoinGecko data.
Published At
6/21/2024 9:24:32 AM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.