Overview
The zkSync Layer-2 network, specialized in Ethereum's zero-knowledge (ZK) technology, has faced criticism within the crypto domain over its recent airdrop initiative. Concerns were raised about the absence of robust sybil countermeasures and the perceived injustice in token allocation during the event. Mudit Gupta, the security chief at Polygon's Layer-2 network, expressed reservations on these issues in a statement released on June 11, shedding light on the controversy.
zkSync Airdrop Event and Backlash
Gupta pointed out deficiencies in the sybil filtering of zkSync's airdrop, indicating that individuals with insight into the criteria had an advantage. The network disclosed that 695,232 wallets were eligible for the ZK token distribution, supported by a list of seven criteria aimed at preventing sybil attacks, where entities exploit multiple wallets for airdrop benefits.
Adam Cochran, associated with Cinneamhain Ventures, analyzed zkSync's eligibility criteria, suggesting they were easily achievable for legitimate users and even more so for those circumventing sybil checks.
Ongoing Responses and Ramifications
The fallout prompted Nansen, a crypto analytics firm, to clarify its non-involvement in sybil defenses or ZK token allocations but provided insights into specific wallet categories, including large holders and flagged fraudulent accounts. On the other hand, crypto researcher Ignas spotlighted zkSync's intentional omission of stringent sybil protections, cautioning against approaches that may inadvertently penalize authentic users.
A preliminary estimate by sybil monitoring entity Sybil Horror 6, using LayerZero Labs data, suggested around 135 million ZK tokens could flow into wallets linked to sybil identities identified by LayerZero. Based on ZK's pre-market values on Aevo and PancakeSwap, this could translate to a total valuation of $52.3 million.
Market repercussions were swift, with a 43% drop in token value observed on both Aevo and PancakeSwap following zkSync's airdrop event disclosure. Matter Labs, the development entity behind zkSync, refrained from immediate commentary, leaving the controversy unresolved.
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