LayerZero Labs Halts 'Sybil Hunting' Program Temporarily as Reports Overwhelm the Team

LayerZero Labs Halts 'Sybil Hunting' Program Temporarily as Reports Overwhelm the Team
Photo by Emilio Garcia / Unsplash

LayerZero Labs, under the leadership of CEO Bryan Pellegrino, has announced a temporary halt to their 'Sybil Hunting' initiative. The program, designed to root out deceptive participants in their token distribution campaign, encountered an overwhelming number of reports concerning potential 'sybils'—fraudulent entities attempting to manipulate the system.

The initiative was launched as part of the preparations for LayerZero's Token Generation Event (TGE), scheduled for the first half of 2024. The aim was to ensure a fair distribution of ZRO tokens by identifying and eliminating dishonest participants. However, the campaign's success led to an unexpected surge in community engagement, resulting in thousands of reports flooding in. This influx has forced the team to pause the program to reassess their strategy and improve data handling processes.

In an effort to manage the situation, Pellegrino proposed a new requirement: a deposit of 0.02 ETH (approximately $60 at the time of writing) to submit a report. This measure is intended to deter frivolous claims and ensure that only serious allegations are brought forward.

The LayerZero team is now taking a brief pause—estimated at one to two days—to implement necessary changes that will streamline the submission process. These modifications are crucial for managing the high volume of input and maintaining the integrity of the TGE.

Previously, as part of the TGE announcement, LayerZero had conducted a wallet snapshot and offered participants a chance to admit any improper actions voluntarily. In exchange for their honesty, the team promised to credit them with 15% of the ZRO tokens they were eligible for.

Pellegrino has emphasized the importance of the data collected through this initiative. According to him, the information is vital for identifying other participants who may be using similar methods and software to game the system. The snapshot indicated that approximately 6 million wallets had interacted with the LayerZero protocol.

Originally scheduled from May 18 to May 31, 2024, the 'Sybil Hunting' campaign is a crucial part of LayerZero's strategy to ensure a fair and equitable distribution of tokens. The temporary suspension is a setback, but it also underscores the company's commitment to fairness and transparency in the face of unforeseen challenges.