In their initial update, LayerZero eliminated 800,000 sybil addresses, marking them ineligible for full token allocation. Before this update, It provided a 14-day time frame to the users doing airdrop farming.
In the beginning, the LayerZero team identified 2 million sybil addresses, but this figure gradually decreased to reduce false identification.
According to a recent post on X, the team announced the end of Sybil’s self-reporting, and not the security update will eliminate them.
The security update aims to reduce the false allocation of tokens to users who are creating multiple addresses to get more tokens.
LayerZero announced that the addresses meeting specified criteria will get 15% of the tokens. The eligible participants will receive the remaining 85% of the tokens.
LayerZero Disclosed Detailed list of Sybil Addresses
LayerZero shared a detailed list of addresses identified by LayerZero, Nansen, and Chaos Labs, including those reported for engaging in airdrop farming.
On May 3, it introduced the self-reporting mechanism for Sybil. LayerZero provided a 14-day deadline for individuals to identify themselves as airdrop farmers and receive a 15% reward for their honesty.
The team said that the initial analysis will identify big sybil clusters. Publishing this list will help others to spot them and reduce the chance of allocating extra token rewards.
The platform clarified that the list is not conclusive until it publishes the final report. The platform may remove or add addresses to the list based on its checking criteria.
The process of hunting Cybil addresses started on May 18, 2:00 pm UTC, and will continue until May 31, 11:59 pm UTC.
To get a reward of 10% allocated to each Sybil address, participants have to report 20 addresses with clear methodology. The first person to report a specific address will get the reward.
The LayerZero team is putting all its efforts into making this approach effective and has decided not to change the initial list they provided.
Sybil Farming and Airdrop Integrity: The LayerZero Approach
Sybil Farming is creating multiple fake accounts and unfairly acquiring reward tokens. This is a major issue in decentralized finance protocols.
Airdrop is a process of rewarding early users with newly issued cryptocurrency. This approach helps the token developer to engage more users before the launch of the token.
In September 2023, LayerZero’s ZRO marked the pioneering debut of a Hyperp on the HyperLiquid perpetual futures decentralized exchange.
Incidents of Sybil farming have also been observed in the crypto space.
In 2022, Optimism identified over 17,000 suspected sybil wallets from its airdrop, which was 6.83% of all eligible wallets.
Similarly, in September, ZkSync Era identified 21,877 wallets involved in Sybil farming, where they were trading a closed-source token among themselves using a private decentralized exchange.
