Developments in the blockchain field continue to attract attention. Accordingly, the token launch by the LayerZero team on June 20 caused a significant increase in transaction fees on the popular Layer-2 network Arbitrum, leading to a record daily revenue of $3.43 million for the network, an increase of approximately 16,680% compared to the previous day.
New Record on Arbitrum Network
LayerZero launched the ZRO token on June 20, but it triggered criticism towards the mandatory donation mechanism that required applicants to spend a small amount per token to receive their allocations. These mechanisms raised the average transaction fees on the blockchain network from the typical fee below 1 cent to 89 cents.
This development led to the network’s profit rising to another record of $3.29 million, according to Dune Analytics and DefiLlama data. LayerZero did this by requiring those who wanted the ZRO token to donate a small amount per token. In a June 20 X post, LayerZero stated:
“To claim ZRO, users need to donate $0.10 in USDC, USDT, or native ETH per ZRO.”
Details on the Subject
The donation will go to Protocol Guild, which helps fund Ethereum developers. The LayerZero team argued that the token launch was not an airdrop event because airdrop events are not aligned with the goals of fair distribution, community building, and protocol health, and many recipients have little or no long-term interest in the project.
This marked the highest revenue day since Arbitrum earned $2.13 million on December 14, the day before its launch, due to the increase in inscriptions transactions on the network. Inscriptions are a type of data formatting that can carry larger packets than simple transaction data like images, making them expensive due to their size.
This cost also reflects on Arbitrum, which only made $414,000 in profit on December 14 due to the higher fees for publishing and verifying expensive registration data on Ethereum. Meanwhile, the ZRO price has started to decline, falling 23% to $3.42 in the last day, according to CoinGecko.
