LayerZero‘s token launch on June 20 caused a significant increase in fees on Arbitrum, resulting in a record daily revenue of $3.43 million for the blockchain, an astonishing 16,680% jump from the previous day.
The ZRO token launch on Thursday faced criticism due to its mandatory “donation” mechanism, requiring claimants to spend a small amount of money per token to secure their allocation.
This mechanism led to a spike in average gas fees on the blockchain, rising to 89 cents from its usual less-than-1-cent fee.
Consequently, Arbitrum’s profits soared to $3.29 million on the day, setting a new record high for the network, according to data from Dune Analytics and DefiLlama.
LayerZero stipulated that ZRO token claimants must donate a small amount per token.
“To claim ZRO, users must donate $0.10 in USDC, USDT, or native ETH per ZRO,” LayerZero stated in a June 20 X post.
They clarified that these donations go to the Protocol Guild, which supports funding for Ethereum developers.
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LayerZero contended that its token launch is “not an airdrop,” arguing that airdrops are incompatible with their goals of equitable distribution, community building, and protocol health.
They noted that many airdrop recipients show “little to no interest” in the project long-term.
This event marked Arbitrum’s most profitable day since December 14, when it earned $2.13 million in revenue.
That day, the network went offline due to a surge in inscriptions, a type of data formatting that carries larger packages, such as images, which are more expensive due to their size.
The increased cost of handling inscriptions was also passed on to Arbitrum, which only made a profit of $414,000 on December 14, due to the higher fees needed to post and verify the expensive inscription data on Ethereum.
Meanwhile, the value of ZRO has dropped significantly. It fell by 23% in the last day to $3.42, after peaking at $4.79, according to CoinGecko.
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