LayerZero Labs has finished its self-reporting phase to detect and combat sybil activity and airdrop farming. Addresses meeting specific criteria will get 15% of the token allocation, with the remaining 85% going to eligible users. A total of 803,093 addresses were flagged as potential sybil addresses and will not receive the full token allocation after review.

Response from the LayerZero Team

Initially, over two million addresses were flagged as potential sybils. LayerZero Labs adjusted their criteria to reduce false identifications, resulting in more accurate identification. The list of flagged addresses, reported through whistleblowing and identified by LayerZero, Chaos Labs, and Nansen, has been made public.

On May 3rd, LayerZero Labs introduced a self-reporting system, offering 15% of the token allocation to identified sybil users within a 14-day period. The analysis aimed to identify large sybil clusters and exclude them from rewards. As calculations are refined, some addresses may be removed from the sybil list, making the final report tentative until publication.

Impact on Airdrop Activity

Sybil reward hunting started on May 18th and will run until June 1st. Participants need to report at least 20 addresses with a clear methodology to qualify for a reward, which is 10% of the intended token allocation. Rewards will go to the first eligible reporter of each address. The initial list remains unchanged during the reward hunt, with ongoing method refinements.

Sybil farming involves creating fake accounts to unfairly gain tokens or rewards. The sybil analysis is based on a snapshot from May 1st, linked to a potential airdrop distribution to community members.

Key Points for Users

Participants must report a minimum of 20 sybil addresses to be eligible for rewards.

The initial address list remains static during the reward phase.

Eligible reporters can receive up to 10% of the intended token allocation.

Decentralized finance protocols often use airdrops to reward early users with newly issued cryptocurrencies. LayerZero's ZRO token was the first token launched on the HyperLiquid futures exchange in September 2023.