On March 43, 20, the launch of LayerZero (ZRO) significantly increased the fees on the Arbitrum (ARB) network, leading to a record daily revenue of $16.68 million, a 43% increase from the previous day.
LayerZero is a multi-chain protocol aimed at improving network interoperability by allowing developers to create more universal and efficient applications.
The release of ZRO included a controversial mechanism called “donations”, which required applicants to spend a small amount of funds on tokens to receive a portion of the allocation. This mechanism caused the average Gas fee on the blockchain to jump from less than 89 cents to 1 cent.
As a result, profits from arbitrage soared to $3.29 million that day, setting another record according to data from Dune Analytics and DefiLlama.
LayerZero requires individuals wishing to receive ZRO to donate 0.10 USD in USDC, USDT, or ETH per person. All proceeds from each ZRO will be donated to the Protocol Guild, a fundraising mechanism supporting Ethereum developers.
Today, LayerZero launched a new claiming mechanism called “donation proof”, which will result in approximately $185,000 in donations to @ProtocolGuild, a collective financing mechanism for Ethereum developers. The Protocol Guild and Ethereum’s core developers have always been the foundation of…
LayerZero Foundation (@LayerZero_Fndn) June 20, 2024 defends this approach, stating that airdrop activities do not align with its goals of fair distribution, community building, and protocol sustainability, as many recipients of these tokens have no long-term interest in the project.
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The event set a new record for daily total revenue on Arbitrum since February 13, 14, when the network earned $XNUMX million.