After its June 20 launch, ZRO surged 15.15% within just 20 minutes before sharply tumbling 22% as people debated whether the donation mechanism was genius or just an excuse for a “tax.”

LayerZero's newly launched token, ZRO, has faced criticism and a 17% decline in value since its launch on June 20. The controversy stems from its donation criterion for claiming tokens, which some have likened to a "tax." To claim ZRO tokens, users must donate $0.10 in USDC, USDT, or native ETH per ZRO token, with the donations going directly to the Protocol Guild, a collective funding mechanism for Ethereum developers. LayerZero defended this approach, stating that it is not an airdrop but rather a method to support the project's long-term success and discourage token farming and Sybil entities.

Despite LayerZero's explanation, the move has sparked backlash from the crypto community, with some users criticizing the mandatory donation and comparing it to an ICO rather than an airdrop. LayerZero's co-founder, Bryan Pellegrino, has defended the token launch, emphasizing that users are not obligated to claim the tokens if they disagree with the donation mechanism.

However, some members of the crypto community see potential benefits in LayerZero's approach. They argue that the donation requirement could contribute to a greater ecosystem and help deter Sybil operations in future airdrops. Additionally, praise has been given for the smooth user experience of the claim page.

Overall, despite the controversy surrounding its launch, ZRO is currently trading at $3.35, reflecting a 17% decline over the last 24 hours.