ZKsync drop controversy: ZK Nation speaks out

Matter Labs’ announcement of the first ZKsync airdrop, scheduled for June 17, sparked significant controversy within the crypto market.

The airdrop will distribute 17.5% of ZKsync’s native token, but the exclusion of several key ecosystem participants has sparked outrage.

ZK Nation Fixes ZKsync Airdrop Issues

Prominent projects built on Ethereum Layer-2 ZKsync Era, such as NFT marketplace Element, have expressed their dissatisfaction. For example, Element, which accounted for nearly 70% of ZKsync Era’s total trading volume through June 12, expressed its frustration on social media.

“As the largest NFT marketplace on ZKsync, we haven’t received any airdrops, is this a joke?,” Element wrote.

Similar sentiments were echoed by ZKApe, an NFT development platform that generated $15 million in gas fees for ZKsync, and DMail, a decentralized email platform. DMail called its exclusion “incredible,” given its high user engagement and transaction activity.

In response, ZK Nation published a detailed blog post explaining the eligibility criteria and rationale for crypto airdrop allocations.

The message specifies that wallets are qualified for the ZKsync airdrop in two main categories: users (89%) and contributors (11%). Users had to link cryptoassets to ZKsync Era and meet one of seven eligibility criteria. During this time, contributors were recognized for their development and community efforts.

ZK Nation highlighted that the allocation was intended to reward long-term organic users rather than opportunistic participants. The blog points out that trading volume alone does not impact allocation size. Instead, a combination of eligibility criteria, time-weighted average balance (TWAB), and bonus multipliers determined the allocations.

For example, early adopters of Ethereum and holders of top ZKsync native NFTs received allocation multipliers.

“The history of a wallet across chains can reveal a lot about its owner. Real users tend to take more risks, especially when they feel like they’re part of a community. They spend time exploring, trying new protocols, and holding speculative assets. On the other hand, bots and opportunists play it safe, putting in minimal effort while trying to blend in and extract value,” ZK Nation wrote.

The blog also addressed specific grievances. Some users who met multiple eligibility criteria but received smaller allocations may have held lower balances over time or lacked qualifying multipliers. Additionally, ZKsync Lite users had to link their assets to ZKsync Era to qualify, a step some overlooked.

Read more: Best airdrops coming in 2024

The controversy highlights issues surrounding the equitable distribution of crypto airdrops and the challenges of balancing recognition and reward. As the release date approaches, the community reviews the criteria and results, seeking transparency and fairness from Matter Labs.

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