Profit on the Arbitrum blockchain increased by almost 16,680% in a day after the launch of the digital token

Editor’s note: not investment advice!

on June 20, the launch of the ZRO token of the LayerZero omnichain protocol caused a rapid increase in commissions in the L2 network of Arbitrum. This led to an increase in the daily revenue of the blockchain to a record $ 3.43 million. The revenue exceeded the previous day’s figure by 16,680%. The average network fee in Arbitrum jumped to $ 0.89 on June 20, although it later returned to the usual $ 0.005.

Reasons

During the launch of ZRO, the LayerZero Foundation asked users to make mandatory donations of $ 0.1 in USDC, USDT, or ETH for each governance token stamp through the Proof-of-Donation mechanism. This decision caused a mixed reaction in the community and led to a sharp increase in Arbitrum’s fees.

The previous jump in fees was recorded on December 15, 2023, when the daily blockchain revenue increased to $ 2.13 million. At that time, publishing data in Ethereum cost the L2 network $ 1.72 million, leaving a net profit of about $ 414,000.

on June 20, Arbitrum’s expenses for basic services barely exceeded $ 140,000, which provided a record benefit of $ 3.29 million.

During the distribution of LayerZero tokens, 85 million ZRO or 8.5% of the total issue of 1 billion ZRO was distributed among the 1.28 million selected wallets.

The introduction of mandatory donations has caused controversy among users, some of whom believe that this indicates that the team is conducting a token sale. Nevertheless, some users noted that it is possible to get ZRO from the distribution without donations using a flash loan. The LayerZero team explained that it does not apply the term «airdrop» to the distribution of ZROs, replacing it with the term «token issue».

No Worries strongly advises readers not to invest in dubious crypto projects and little-known digital assets!