LayerZero handles Sibil activity with self-reporting
LayerZero Labs has unveiled a solution to address Sybil's activity, also known as “airdrop farming.” The creator of the cross-chain communication protocol offered Sybil users 15% of their planned tokens for loyalty within a 14-day period.
LayerZero said in a May 3 post that it believes it is important for the protocol to distribute tokens to genuine and committed network users, rather than individuals engaged in Sybil farming.
Sybil farming refers to the practice of creating multiple fake accounts to obtain unfair tokens or rewards. The organizers want to ensure that their token distribution benefits those who contribute positively to the growth and sustainability of the network, rather than those who benefit from deceptive methods such as Sybil Farming.
In an effort to curb the negative effects of Cybil's activity, LayerZero Labs is offering incentives to users engaged in such activity to submit and voluntarily accept it. The incentive is for these users to self-report within a certain period of time and receive 15% of the tokens they were originally allocated without facing additional claims or penalties.
“We are giving all Sibil users an opportunity to self-report within the next 14 days with a refund of 15% of their intended share.
The self-reporting process requires linking a wallet associated with Sybil's activity and signing a message to verify ownership.
Related: Coinbase's Base Could Make DeFi NVIDIA
LayerZero Labs will enforce consequences for those who do not self-report by May 17. The first phase involves publicly identifying involuntary Sybil users, and the second phase allows community members to report suspicious Sybil activities.
The proposal comes after the first snapshot taken on May 1 related to the potential air droplet distribution for community members. This screenshot shows the expiration date in the upcoming token airdrop, as confirmed by the team in a graphic shared on X.
Airdrops are widely employed in decentralized finance (DeFi) protocols, rewarding early adopters with newly minted cryptocurrencies.
LayerZero Labs did not provide further details about the airdrop, but early indications are that they are preparing to launch the token in early 2024, according to a December 7, 2023 X post. LayerZero's ZRO was the first hyperliquid (Hyperliquid-only perp) to launch on the HyperLiquid Perpetual Futures decentralized exchange in September 2023.
Magazine: 68% of Runes Are in the Red – Are They Really an Update for Bitcoin?
