The launch of LayerZero (ZRO) on June 20 significantly increased fees on the Arbitrum (ARB) network, resulting in a record daily revenue of $3.43 million, marking a 16,680% increase compared to the previous day.
LayerZero is a multi-chain protocol aimed at improving the operational compatibility of a network by allowing developers to create more universal and efficient applications.
The launch of ZRO included a controversial “Proof-of-Donation” mechanism, requiring candidates to spend a small amount of tokens to secure a portion of the distribution. This mechanism led to a spike in average gas fees on the blockchain to 89 cents, up from the usual less than 1 cent.
As a result, Arbitrum’s profits surged to $3.29 million for the day, setting another record, according to data from Dune Analytics and DefiLlama.
LayerZero required those wishing to obtain ZRO to donate $0.10 in USDC, USDT, or ETH for each ZRO, with the proceeds going to Protocol Guild, a funding mechanism supporting Ethereum developers.
LayerZero is defending this approach by arguing that airdrop events do not align with their goals of fair distribution, community building, and protocol sustainability, as many token recipients from these events lack long-term interest in the project.
This event marked the highest revenue day for Arbitrum since December 14, when the network earned $2.13 million.