LayerZero Labs has recently introduced a solution to combat sybil activity, which is commonly known as “airdrop farming.” The company, known for its cross-chain communication protocol, has implemented a self-reporting mechanism that rewards sybil users with 15% of their planned token allocation if they honestly disclose their activities within a 14-day timeframe.
LayerZero Labs firmly believes that its token distribution should benefit genuine and dedicated network users, rather than individuals who engage in deceptive practices like sybil farming. Sybil farming involves the creation of multiple fake accounts to unfairly obtain tokens or rewards. By encouraging self-reporting, the company aims to ensure that the network’s growth and sustainability are supported by those who contribute positively, rather than exploit it through dishonest means.
In order to address the negative effects of sybil activity, LayerZero Labs is also providing an incentive for users engaged in such behavior to voluntarily come forward and disclose their actions. By doing so, these users can receive 15% of their original token allocation without any further inquiries or penalties. The self-reporting process requires users to connect a wallet associated with sybil activity and sign a message to confirm ownership.
LayerZero Labs has stated that there will be consequences for those who fail to self-report by May 17. The first phase of these consequences involves publicly identifying sybil users who do not come forward voluntarily, while the second phase allows community members to report suspected sybil activity.
This proposal comes after the first snapshot taken on May 1, which determined eligibility for an upcoming token airdrop to community members. Airdrops are commonly used by decentralized finance (DeFi) protocols to incentivize early users by rewarding them with newly issued cryptocurrencies. LayerZero Labs has not provided specific details about the airdrop, but previous indications suggested that they were preparing for a token launch in early 2024, as mentioned in a December 7, 2023, post on X.
LayerZero’s ZRO was the first Hyperliquid-only perpetual futures to be launched on the HyperLiquid decentralized exchange in September 2023.
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