LayerZero's newly launched ZRO token has encountered significant challenges following its release. The token's value plummeted by 17% within the first 24 hours, with many users expressing discontent over the token's distribution mechanism. The controversy stems from the requirement that users must donate a small amount of money per ZRO token to claim them. This move has been likened to a "tax" rather than a donation, leading to widespread criticism.

The token's launch was met with enthusiasm initially, with its value surging by 15.15% within the first 20 minutes. However, this enthusiasm was short-lived as the price dropped by 22% within the next two hours. The donation requirement has been seen as a departure from traditional airdrops, which involve distributing tokens for free to generate interest and encourage adoption. LayerZero has defended the move, stating that traditional airdrops no longer meet their objectives of equitable distribution, community building, and enhancing protocol health.

Some users have praised the donation mechanism, arguing that it helps support the broader ecosystem and establishes a base cost for the token, which could deter Sybil attacks in the future. However, many users have expressed frustration with the requirement, calling it a "Pay to Claim" airdrop and stating that it is a slap in the face. LayerZero's co-founder, Bryan Pellegrino, has addressed the criticism, stating that nobody is forced to donate and that users are not entitled to the tokens.

The controversy has also led to a significant debate on Polymarket, a decentralized betting platform, where users had bet on the realization of a "ZRO airdrop" before June 30. The outcome of the bet has been disputed, with many users questioning the true nature of the ZRO launch. The debate continues, with some users calling for a resolution through UMA's decentralized truth machine. Despite the challenges, LayerZero remains adamant that the token launch is "not an airdrop" and that the donation mechanism is a necessary step towards a more equitable distribution of tokens.