LayerZero’s anti-Sybil strategy reveals underlying tensions within the DeFi sector

LayerZero, a protocol that enables cross-chain interoperability, is preparing for its first token airdrop. However, its approach to combating token farmers has caused division within the community. The controversy revolves around LayerZero’s “anti-Sybil strategy,” which aims to prevent individuals or groups from creating multiple wallets to qualify for the airdrop multiple times. While some argue that this strategy is necessary to ensure the airdrop tokens go to genuine users, others believe it unfairly targets certain applications, such as Merkly, which is part of the LayerZero ecosystem. CC2, an adviser at Merkly, defended the application and criticized LayerZero’s approach. The debate highlights the ongoing tension between protocols and users. Venture capital firms also take an interest in airdrop strategies, as they can be positive or negative events depending on the purpose and design of the airdrop. To address the issue of Sybil attacks, some suggest implementing liveness checks that require users to verify their uniqueness through video feeds. However, the adoption of such identity protocols faces challenges due to concerns about user privacy and resistance to sharing personal information. The article concludes by stating that protocols must navigate these challenges and find a balance that satisfies both the community and the need for security.