Scroll announced that they will allocate 7% of the total token supply of SCR for the first airdrop. Many users have expressed their disappointment with the SCR token economic system.
The team behind the Ethereum Layer 2 blockchain, Scroll, has announced that they will distribute 7% of the total new SCR token supply in the first airdrop, but the design of this distribution has drawn criticism from some members of the community.
"Our first airdrop will fairly reward key contributors to the Scroll ecosystem. The SCR token allocation reflects the importance of participation, contribution, and community support," according to a post on the Scroll blog.
Over 570,000 wallets are expected to receive 5.5% of the token supply, including over 600 open-source contributors, 115 technical contributors, over 100 ZK researchers, and over 10 non-profit organizations and data providers.
These "community drop" recipients will collectively receive 55,000,000 SCR tokens, worth approximately $77,000,000. The majority of this, 40 million SCR tokens, will be "proportionally distributed among on-chain participants who have accumulated" Scroll's version of points, called marks, as of October 19th.
An additional 10 million tokens, representing 1% of the total supply, have been set aside for the "Flat Boost" program, a Scroll-designed initiative to ensure that all on-chain participants "receive a meaningful airdrop" regardless of the number of marks they have accumulated.
Scroll, a network using zero-knowledge proofs to scale Ethereum, is one of the last major Layer 2 projects to deploy a native token airdrop.
While the token distribution has been long-anticipated, many community members have expressed concerns about the design of this token generation event.
"The issue is the team's approach to airdrop design in general, which seems to not care about the interests of the average (retail) user - which I think is a bad trend for the crypto market overall."
Specifically, some have expressed outrage that 5.5% of the tokens are allocated to the Binance Launchpool, creating a situation where "Binance/BNB whales or any other whales can just capture most of the tokens" for themselves by farming the tokens with an advantage of two days, Andrew said. This will then lead to a "dump from people who have never used the Scroll network."
"In other words, we have two user groups - Binance users and Scroll users," he added.
Furthermore, the top 10 wallets hold over 10% of all accumulated marks, while the top 100 wallets own around 250 million marks, or about 30% of the total marks accumulated so far.
"It's hard to call that decentralized when a large portion of the token supply ends up in the hands of a few," Andrew said.
This point was echoed by @katexbt, who has opened an online store on Scroll, who argued that the airdrop is designed to benefit Sybil farmers or bot users who can exploit it.
Finally, there are concerns that the SCR tokenomics are too heavily skewed towards the team. With 23% of the total supply allocated to the team and 10% for fundraising, that represents a token value of $322 million at current prices.
"I don't see a fair reason for the team to require the airdrop distribution to be aimed at rewarding loyal users," Andrew said. "I understand that 'pleasing all or most' is not possible in the current market conditions, but making an effort to not completely disappoint them is more realistic."
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The article Layer-2 Scroll announces airdrop, controversy erupts in the community first appeared on CoinMoi.
