On October 3rd, LayerZero (ZRO) launched a significant increase in fees on the Arbitrum (ARB) network, resulting in a record daily revenue of $166.8 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, including the controversial “donation” mechanism, requires 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 soar from less than 89 cents to 1 dollar.
As a result, profit arbitration sales for the day rose to $3.29 million, setting another record according to data from Dune Analytics and DefiLlama.
LayerZero requires individuals seeking ZRO to donate 0.10 US dollars in USDC, USDT, or ETH. The proceeds from each ZRO will be donated to the Protocol Guild, which is 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 defends this approach, arguing that airdrop activities do not align with its goals of fair distribution, community building, and protocol sustainability, as many token recipients of these activities have no long-term interest in the project.
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The event set a new record for Arbitrum’s highest daily total revenue since June 14th, when the network earned $2.13 million.