LayerZero Labs has wrapped up its self-reporting phase aimed at identifying and addressing sybil activity and airdrop farming. As part of this process, addresses meeting specific criteria will receive 15% of the token allocation, with the remaining 85% distributed among eligible users. Following a thorough review, a total of 803,093 addresses have been flagged as potential sybil addresses and will not receive the full token allocation.

Response from the LayerZero Team

Initially, over two million addresses were flagged as potential sybils, prompting LayerZero Labs to refine their criteria to reduce false positives and enhance accuracy in identification. The comprehensive list of flagged addresses, sourced from both internal investigations and external contributions from entities like Chaos Labs and Nansen, has been made public for transparency.

LayerZero Labs initiated a self-reporting mechanism on May 3rd, offering a 15% token allocation to identified sybil users within a specified 14-day window. The objective was to pinpoint and exclude large industrial sybil clusters from reward eligibility. As the analysis progresses and addresses are reevaluated, some may be removed from the sybil list, rendering the final report subject to updates until its official release.

Impact on Airdrop Activity

Sybil reward reporting commenced on May 18th and will run until June 1st, requiring participants to report a minimum of 20 addresses with a clear methodology to qualify for a reward equivalent to 10% of the intended token allocation for Sybil. Rewards will be allocated to the first eligible reporter for each specific address, with the initial address list remaining static during the reporting period as the team continues to refine their assessment methods.

Sybil farming, characterized by the creation of multiple fake accounts to gain tokens unfairly, has been a focal point following an initial snapshot taken on May 1st in preparation for a prospective airdrop distribution to the community.

Key Points for Participants

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

The initial address list will remain unchanged throughout the reporting phase.

Eligible reporters stand to receive up to 10% of the intended token allocation for Sybil.

Airdrop events are commonly utilized by decentralized finance protocols to reward early adopters with newly minted cryptocurrencies. LayerZero's ZRO token, the inaugural token launched on the HyperLiquid futures exchange in September 2023, signifies the platform's commitment to innovation in the crypto space.