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The Scroll protocol community expresses dissatisfaction with the recent allocation of 5.5% of the new SCR Token distribution plan to Binance Launchpool. Community members argue that this move unfairly advantages large investors within the world’s largest cryptocurrency exchange, Binance.
Community’s Reaction
A prominent DeFi researcher, known as @defiignas, commented on Tuesday, stating, “Allocating 5.5% of the total supply to major investors on Binance for just two staking options is outrageous.” Another account, Airdrop Finder’s community manager, highlighted concerns about whales on Binance bypassing Scroll farming.
A blog post released by Scroll on Tuesday outlined that 35% of the 1 billion SCR tokens are designated for ecosystem and growth, 23% for contributors to the Scroll protocol, 17% for investors, 15% for airdrops, and 10% for the Scroll Foundation. Notably, 5.5% of the portion allocated for ecosystem and growth is reserved for Binance Launchpool and Pre-Market.
Reasons for the Criticism
Community members claim that large investors on Binance attain an unfair advantage because they might sell off their tokens after inflating the price. Additionally, the division of airdrop distribution has sparked dissatisfaction among community members.
“I will be uncomfortable if less than 15% airdrop is given to the Scroll community.” -@defiignas
In response to the criticisms, Scroll’s communications head, Ryan Dennis, stated that collaboration with Binance would enable Scroll to reach a broader user base in developing countries. Dennis asserted, “We designed Scroll to be user-friendly and easily accessible; our partnerships with global exchanges are crucial for this mission.”
Scroll is a ZK roll-up solution that assists developers in creating projects on the Ethereum 
$2,552 Virtual Machine. The SCR token will play various roles in governance and help decentralize the protocol further.
These developments indicate that Scroll must consider the community’s concerns and develop fairer and more transparent token distribution strategies.
