The Ethereum-based Scroll network faced backlash after distributing its SCR tokens via Binance Launchpool. Users expressed frustration over the platform's decision to prioritize a centralized exchange over its own community.

Community Reaction to Token Distribution

Many in the crypto community were concerned about the distribution of tokens, noting that Binance users received a significant portion—5.5% of the total supply—in just two days. In comparison, long-term mainnet participants received only 7%. This uneven allocation led to accusations that Scroll was compromising its decentralization principles, with some users feeling that the network was "kneeling to CEXs".

Scroll's Founder's Perspective

Co-founder Ye Zhang explained that the decision was part of a larger growth strategy. He acknowledged the criticism but emphasized that the partnership with Binance was crucial for Scroll's future. Zhang defended the collaboration, highlighting the practical advantages of partnering with Binance. He pointed out that major exchange support is vital for providing necessary on-ramps and off-ramps for stablecoins.

Next Steps and Conclusions

Zhang clarified that the tokens distributed to Binance were drawn from the protocol's growth budget, not from community airdrops. He reassured users that 15% of the tokens are set aside for the community, with more airdrops on the horizon. He likened the situation to Apple's app fees, suggesting that the distribution power of Binance justified the decision.

While Scroll's collaboration with Binance has sparked decentralization debates, the company maintains it is necessary for long-term growth and proposes further community support initiatives.