On October 3rd, LayerZero (ZRO) launched and significantly increased the fees on the Arbitrum (ARB) network, resulting in a record daily revenue of $16.68 million, a 143% increase from the previous day.
LayerZero is a multi-chain protocol aimed at improving network interoperability by allowing developers to create more versatile 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 distribution. This mechanism caused the average gas fee on the blockchain to skyrocket from less than $0.89 to $1.
As a result, profit arbitration reached a record sales volume of $32.9 thousand, according to data from Dune Analytics and DefiLlama.
LayerZero requires individuals who want to obtain ZRO to donate $0.10 in USDC, USDT, or ETH. The proceeds from each ZRO will be donated to the protocol guild, a fundraising mechanism supporting Ethereum developers.
Today, LayerZero introduced a new claiming mechanism called “donation proof,” which will result in approximately $185 thousand in donations to the Protocol Guild, a collective funding mechanism for Ethereum developers.
Protocol Guild and Ethereum’s core developers have always been the foundation of LayerZero.
LayerZero defends this approach, arguing that airdrop campaigns do not align with its goals of fair distribution, community building, and protocol sustainability, as many recipients of these campaigns have no long-term interest in the project.
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This activity set a new record for daily total revenue on Arbitrum since October 14th, with the network earning $200,000.
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