The rapid development of blockchain technology is reshaping our lives and business models. Airdrops, as a promotion and incentive mechanism in the blockchain ecosystem, have gained significant attention in recent years. However, along with airdrops come various challenges and risks, with the most prominent being the Sybil Attack. This article will explore the significance and current status of airdrops, analyze cases like LayerZero and ZKSync to understand how they are addressing challenges, and discuss the future direction of airdrop mechanisms.
Why do projects conduct airdrops?
Blockchain projects choose to conduct airdrops for multiple reasons, laying the foundation for the central role of airdrops in the blockchain ecosystem:
– Increase visibility and user participation: Airdrops enable projects to quickly attract a large number of users, expand community size, and enhance the project’s market influence.
– Distribute token holdings: By conducting airdrops, projects can distribute tokens to more users, avoiding concentration in the hands of a few large holders and increasing decentralization.
– Test networks and applications: Airdrops encourage users to test, identify, and fix potential issues, improving product quality and user experience.
– Incentivize early supporters: Airdrops reward early supporters, increasing user loyalty and engagement.
Challenges faced by airdrops
As airdrop mechanisms become more common, projects also face increasing challenges and potential risks:
– Sybil Attack: Attackers abuse airdrop rewards by creating numerous false identities, leading to the distribution of rewards meant for real users being divided among fake accounts.
– Bot manipulation: Automation tools and scripts (bots) may be used to manipulate airdrop participation, undermining fairness.
– Exploitation of oversight mechanisms: Malicious users may exploit vulnerabilities in airdrops for attacks or manipulation, damaging the project’s healthy development.
LayerZero’s Sybil Sweep Operation
In addressing airdrop challenges, LayerZero’s Sybil Sweep Operation has become a widely discussed case. They have taken a series of measures to combat Sybil attacks and protect the fairness of airdrops.
On May 4, 2024, LayerZero Labs launched the “Self-Report Sybil Activity” program. Witch addresses reporting relevant addresses on the designated page could receive the expected allocation of 15% without answering any questions. The deadline was May 17, 2024, at 19:59:59.
After the self-report period ended, the sweep operation was divided into two phases. In the first phase, the official list of identified witch users was released, where those identified but not self-reported users would not receive airdrop allocations. In the second phase, bounties were opened, allowing users to submit detailed reports on witch activity. Successful reports would result in witch users not receiving airdrop allocations, and bounty hunters receiving 10% of the expected allocation for witch addresses.
Through these measures, LayerZero successfully identified and filtered out a large number of potential witch addresses, enhancing the fairness of the airdrop.
As of June 4, 2024, Bryan Pellegrino tweeted that they were reviewing witch reports, and users could submit objections. While being included in the reporting list would increase the risk of the address being considered a witch, it did not guarantee the address would be classified as such. The final witch list has not been released, and current reports may be false alarms, to be filtered out later. The final witch address list will be announced by the end of June.
Subsequently, on June 8, 2024, Bryan Pellegrino tweeted again that Nansen had confirmed 60,995 addresses as witch address clusters.
The highly anticipated ZKSync airdrop plan
Following LayerZero, ZKSync, as a Layer 2 solution based on zero-knowledge proof (ZK-Rollup) scaling technology, has also attracted significant attention, especially with its recently launched airdrop plan. The ZKSync Association will airdrop 3.6 billion ZK tokens to early users and adopters next week, with 695,232 eligible wallets. The snapshot was taken on March 24, 2024, and community members can check their eligibility on the claim.zknation.io website and claim the airdrop starting next week until January 3, 2025.
This airdrop accounts for 17.5% of the total ZK token supply. Users will be able to start claiming their tokens on June 24, 2024, with the claiming period ending on January 3, 2025.
Users eligible for the ZKSync airdrop
The eligibility and criteria for ZKSync airdrop allocations are very strict to ensure that only genuine users and contributors are rewarded:
– Users (89%): Active ZKSync users who have conducted transactions and reached the activity threshold on ZKSync.
– Contributors (11%): Individuals, developers, researchers, communities, and companies who have contributed to the ZKSync ecosystem and protocol through development, promotion, or education.
– Eligibility is based on the ZKSync Era and ZKSync Lite activity snapshots taken at 00:00 UTC on March 24, 2024.
Distribution method of ZKSync airdrops
ZKSync allocates airdrops based on users’ transaction activities and holdings on ZKSync Era and ZKSync Lite:
– Eligibility verification: Each address applying for the airdrop must have at least one point to show its activity on ZKSync.
– Allocation calculation: Airdrop allocations are calculated based on users’ asset holdings in ZKSync Era (including assets in wallets and DeFi) and the holding time of these assets. The maximum airdrop limit per address is 100,000 ZK tokens.
– Multiplier rewards: Users can also earn allocation multipliers by holding ZKSync native NFTs, participating in DeFi projects, and other activities to reflect their contributions to the ZKSync ecosystem.
Witch detection
This airdrop emphasizes witch detection to ensure rewards go to genuine users. ZKSync uses on-chain data analysis and behavioral pattern recognition to eliminate witch addresses, ensuring the fairness and effectiveness of the distribution.
Interestingly, they did not engage in large-scale witch hunting, leading to widespread criticism. Among the 690,000 addresses receiving the airdrop, not only were the airdrop rules ambiguous, but there were also multiple witch addresses that had already been investigated. According to witch hunter Artemis, some front-runners obtained over 2 million ZK tokens by depositing the same amount of Ethereum on the same day, with almost all accounts being flagged on LayerZero’s witch list.
The future of airdrop mechanisms
The unspoken rules between airdrop hunters and projects seem to have led to misunderstandings between the two. Many users believe that airdrops are their deserved “earnings” for their efforts in the bear market, being active and contributing fees to help projects create the illusion of prosperity on-chain, and should be rewarded. However, these users have strong motivations, which project teams may not fully appreciate.
The intention of project teams is not to be antagonistic to the community but, after joining the ranks of thousands of studios in the airdrop army, they need to be more cautious in airdrop distribution.
LayerZero and ZKSync’s airdrop plans showcase the innovative governance measures blockchain projects are taking in the face of challenges like Sybil attacks. These cases provide valuable experiences for the future design of airdrops.
In the current cryptocurrency ecosystem, various airdrop plans still face significant challenges and opportunities. We look forward to more blockchain projects drawing on these successful experiences to design airdrop mechanisms that are fair, transparent, and secure, contributing to the healthy development of the entire ecosystem. Whether project teams or ordinary users, they should maintain a cautious and innovative attitude in this wave of technological change, embracing the infinite possibilities in this vast universe.
ZAN x Artela
If you missed out on the previous two airdrops, ZAN still has an Artela airdrop activity you can participate in.
How to participate in the ZAN x Artela activity?
– Visit https://renaissance.artela.network/vision/12.
– Follow @zan_team.
– Visit https://zan.top/artela and connect your wallet.
– Use the ZAN KYT tool to scan risks and mint NFTs.
– After completing the above steps, verify the task at https://renaissance.artela.network/vision/12.
– Explore ZAN.TOP and assess your investment portfolio risk level using the ZAN KYT tool, then mint your ZAN Safe Pass at Artela for a new DApp experience.
Don’t miss this unique opportunity, participate now!
This article was written by ZAN Team (official account @zan_team) and Takeda (personal account @banlideli).
