LayerZero Labs came up with a solution to handle Sybil activities, which is commonly known as “airdrop farming.”. The developer of the cross-chain communication protocol introduced a self-reporting mechanism.
This mechanism allows Sybil users to allocate 15% of their tokens for honesty in a given timeframe of 14 days. LayerZero will impose penalties on those who fail to self-report by May 17th.
According to a post shared on X by LayerZero on May 3, the developer believes that it is better to distribute tokens among genuine users committed to the network. Distributing tokens to individuals involved in Sybil farming is of no use.
LayerZero’s Efforts Against Sybil Farming & Fair Token Distribution
Sybil faring refers to people creating fake accounts to acquire more tokens in terms of rewards. The developer wants to confirm that the token distribution is among the genuine users who contribute to network growth rather than those who acquire the token with cheap tactics like Sybil farming.
In the drive to overcome the Sybil activity, LayerZero is providing an opportunity for the users to come up within a given time frame and receive an incentive of 15% of the total tokens allocated to them. They can self-report themselves without further investigations or penalties to receive this reward.
“We are giving all Sybil users an opportunity to self-report within the next 14 days in return for 15% of their intended allocation, no questions asked.”
To self-report, users must connect a wallet linked to Sybil’s activity and sign a message to confirm ownership.
After May 17, ZeroLabs will start imposing penalties on individuals who don’t come up by self-reporting. In Phase One, ZeroLabs will publicly spot users involved in Sybil activity, and in Phase Two, it will take the help of community members to spot Sybil activity and report it.
The suggestion follows a recent screenshot taken on May 1, which relates to the distribution of airdrops among community members. This snapshot explains the eligibility for the upcoming token airdrop, as affirmed by the team in an image posted on X.
Airdrops are a strategy commonly used by DeFi protocols to engage more customers by rewarding them with new tokens.
As of December 7, 2023, a post shared on X by LayerZero Labs had not disclosed further specifics about the airdrop, but previous indications suggested it would launch its token in early 2024.
LayerZero’s ZRO became the first hyperp (hyperliquid-only perp) launched on the HyperLiquid perpetual futures decentralized exchange in September 2023.
