Overview
Nearly 6 million unique wallet addresses have interacted with LayerZero since its inception over two years ago. For effective token distribution, identifying the most resilient users ie those likely to remain active or replicate previous activities is essential.
Addressing Sybil Activity
Detecting Sybil activities is a crucial challenge for equitable distribution.
Identified Sybil activities within LayerZero include:
- An individual or entity operating multiple addresses for industrial farming.
- Creating a "valueless" NFT solely for transferring across chains.
- Using applications known for "Sybil farming" such as Merkly, L2Pass, L2Marathon.
- Conducting minimal transactions like moving $0.01 across chains to appear active.
- Self-identification as a Sybil is generally accurate.
- Sybil users are encouraged to self-report within a 14-day window for a reduced allocation of 15%, no questions asked.
Failure to self-report by the deadline (May 17th, 11:59:59 UTC) leads to two outcomes:
Self-reporting Process
Sybil users wishing to self-report should:
- Access sybil.layerzero.network.
- Connect a wallet linked to Sybil activities.
- Sign a message to confirm ownership.
- Apply this process to all relevant addresses.
- An API is available for bulk reporting of extensive Sybil activities.
Note: Allocation eligibility must adhere to legal and geographical regulations and all transactions are permanently recorded on-chain.
Conclusion
LayerZero aims to ensure a fair and efficient token distribution by prioritising its most resilient users, those who have demonstrated consistent engagement and are likely to continue their active participation. The platform faces the significant challenge of addressing Sybil activities, which compromise the integrity of the distribution process. By implementing a comprehensive strategy that includes a self-reporting mechanism for Sybil users and stringent detection measures, LayerZero seeks to mitigate these risks. Users identified as engaging in Sybil activities are given an opportunity to come forward and rectify their actions, thereby fostering a more trustworthy and robust network. As the system moves forward, adhering to strict legal and geographical standards and ensuring all transactions are permanently recorded on-chain, LayerZero continues to build a foundation that rewards genuine participation and supports the platform’s ongoing growth and success.
Disclaimer: This research report is exactly that — a research report. It is not intended to serve as financial advice, nor should you blindly assume that any of the information is accurate without confirming through your own research. Bitcoin, cryptocurrencies, and other digital assets are incredibly risky and nothing in this report should be considered an endorsement to buy or sell any asset. Never invest more than you are willing to lose and understand the risk that you are taking. Do your own research. All information in this report is for educational purposes only and should not be the basis for any investment decisions that you make.