ZkSync, a Layer-2 scaling solution for Ethereum, has faced severe backlash from the cryptocurrency community due to the controversial distribution of its ZK tokens. The recently announced airdrop, scheduled for June 17, has raised concerns over the unfair allocation of tokens and the lack of anti-Sybil measures, leading to widespread dissatisfaction among users.

The airdrop aims to distribute 17.5% of ZK's total token supply, approximately 3.68 billion tokens, among 695,232 eligible wallets. However, the criteria for eligibility have been criticized for favoring Sybil attacks, where users manipulate interactions using multiple wallets to qualify for rewards. This has led to nearly 90% of addresses being excluded from the reward distribution, sparking outrage among the community.

Security experts have also weighed in on the controversy, with Mudit Gupta, Chief Information Security Officer at Polygon Labs, labeling the zkSync airdrop as the "most farmable and farmed airdrop ever" due to its lack of effective Sybil filtering. Adam Cochran, a partner at Cinneamhain Ventures, criticized the airdrop for its poor planning from a Sybil perspective, noting that it made it easy for farmers and difficult for genuine users.

The controversy has had a significant impact on zkSync's Total Value Locked (TVL), which saw a sharp decline from nearly $200 million to approximately $128 million post-announcement. The primary reason for this decline was users withdrawing their assets in protest against the perceived unfairness in the token distribution.

Despite the backlash, zkSync has emphasized its commitment to transparency and community engagement. The team has invited further feedback from the community to better align future decisions with user expectations, signaling a willingness to "adapt and address the concerns" raised by the airdrop controversy. The project's response to feedback and adjustments in future initiatives will be critical in regaining user trust and stabilizing the network's value.