The LayerZero airdrop has seen a rapid increase in the number of messages sent across the crosschain communication network as users claim ZRO tokens. The airdrop has been frequently discussed due to the built-in anti-sybil measures to determine allocations, as well as the $0.10 donation to the Protocol Guild required for each token claimed.
While the launch of the ZRO token does not appear to have helped the LayerZero network recover from the decline in activity following the announcement of the snapshot airdrop, another protocol has benefited.
Arbitrum made $3.38 million in revenue on June 20, the day the ZRO airdrop began. This was the highest revenue day ever for the rollup and a sharp change from the tens of thousands of dollars the network typically made after Dencun.
The revenue generated by Ethereum Layer 2 is the amount of fees paid on these networks. Many rollups saw revenue decline after Dencun as users paid lower fees, but profits increased for many scaling solutions as the cost of posting data on the Ethereum mainnet dropped significantly.
The fact that Arbitrum generates such high fees shows that there is a huge demand for Arbitrum block space, as users are willing to pay fees to make transactions on the network.
This makes sense, as Arbitrum is the coordinating chain for the LayerZero token claim contract. This means that claims can be processed atomically on Arbitrum, while other networks need to use crosschain messaging on the LayerZero network to facilitate claims.
Naturally, when the token launched, many users rushed to Arbitrum to claim, causing the average gas price on the network to skyrocket to 34.7 gwei, from just 0.01 gwei earlier that day, causing transaction fees to skyrocket.
It is not uncommon for airdrop claimants to want to receive their tokens as quickly as possible, especially if they plan to sell them immediately after receiving them. Many tokens, like ZRO, face a sharp sell-off after distribution, which makes it necessary to claim and sell tokens as soon as possible to maximize profits.
ZRO 1-day price chart. Source: TradingView
The phenomenon was short-lived, as Arbitrum earned just $51,000 on June 21, returning to the network’s normal range. But on June 20, Arbitrum paid just $37,820 to post the data on the Ethereum mainnet, meaning it got to keep most of the millions of dollars it collected in fees, helping to shore up the DAO’s coffers.
Itadori
According to The Block
