LayerZero partnered with Common to secure its Token Generation Event, enhancing community engagement & security.
LayerZero is a cross-chain protocol enabling secure and efficient communication. It allows development of dApps that operate on multiple blockchains, standardizing interactions and simplifying the blockchain ecosystem to foster innovation and collaboration.
LayerZero had built a large, dedicated community but faced ongoing threats from malicious attacks. They needed a secure platform to generate ideas and safely collect community feedback, avoiding disruptions that could undermine their initiatives.
As they neared their most significant milestone, the Token Generation Event (TGE) for their native token, $ZRO, it was vital to have a secure space to develop programs that would ensure a successful and fair token distribution. This environment was crucial for promoting constructive community engagement and protecting the integrity of the TGE.
That’s where Common stepped in.
To ensure success for the token distribution process, and reward creators who had already built on LayerZero. LayerZero ran several campaigns via Common to garner feedback from their community ahead of their TGE. Here's how Common facilitated the solution:
Sybil attackers use fake identities to exploit TGEs and drive down token prices. They farm activities likely to earn airdrops, then quickly sell the tokens, harming the price. These attackers have no interest in the project's vision and are only focused on profiting from token sales.
To combat this, LayerZero introduced a Sybil bounty hunt on Common with a bonding process. Bounty hunters post a bond to submit reports, refunded if valid or burned if fraudulent.
This approach deterred malicious reports, enhanced security, and offered priority access along with TGE incentives. It also encouraged Sybil attacker self-reporting by rewarding them with a share of the token allocation.
Here are some stats on the success of the program:
LayerZero's TGE allowed projects to determine their own token distribution criteria, rewarding developers retroactively. This approach ensures that developers and users continue to be rewarded, supporting long-term growth and significantly improving token price. The TGE also marked the largest RFP program in history.
Using Common’s secure gating functionality, LayerZero ensured that only allowlisted addresses or those who issued a bond could participate in the bounty program. NFTs gated each topic, limiting spam and simplifying the review process for the LayerZero team.
LayerZero is now one of Common’s largest communities with:
Their success highlights Common's capability to support community engagement beyond just governance.
*as of August 2024
LayerZero’s TGE was a notable success, and set a market standard for how such events should be conducted in the future.
LayerZero put their contributors first. Airdrops were handled thoughtfully, removing ambiguity so each stakeholder would know how they would be rewarded upon TGE.
LayerZero's TGE also featured a unique mandatory requirement. Participants had to donate 10% of the token's speculative value to the Ethereum Foundation to claim the airdrop.
Unlike typical airdrops, LayerZero's approach addressed incentive misalignment, resulting in significant attention and positive branding.
And to prove its impact, LayerZero's token price ($ZRO) has shown a strong recovery, especially compared to many airdrops that see a price spike followed by a decline. This success demonstrates the effectiveness of LayerZero's TGE in building a sustainable and aligned community.
Launching a token and want to ensure security & community trust? We can help
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