On June 20, 2024, the launch of LayerZero (ZRO) significantly boosted fees on the Arbitrum (ARB) network, resulting in record daily revenues of $166.8 million, a X% increase from the previous day.
LayerZero is a multi-chain protocol aimed at enhancing network interoperability by enabling developers to create more versatile and efficient applications.
The release of ZRO, including the contentious “donation mining” mechanism, required applicants to spend a small amount of tokens to receive a portion of the distribution. This mechanism caused average Gas fees on the blockchain to surge from under $0.89 to $1.
Consequently, profit arbitration reached a record $32,900 for the day, according to data from Dune Analytics and DefiLlama.
LayerZero mandated individuals interested in acquiring ZRO to donate $0.10 in USDC, USDT, or ETH per person. Each ZRO yield will be donated to the Protocol Guild, a fundraising mechanism supporting Ethereum developers.
Today, LayerZero introduced a new claiming mechanism called “donation proof,” resulting in approximately $185,000 in donations to @ProtocolGuild, a collective financing mechanism for Ethereum developers.
Protocol Guild and Ethereum’s core developers have been foundational to…
LayerZero defended this approach, arguing that airdrop activities do not align with its goals of fair distribution, community building, and protocol sustainability, as many token recipients from these activities lack long-term interest in the project.
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The event marked Arbitrum’s highest daily total revenue since June 14, 2024, when the network earned $X million.
