Addressing Sybil Activity

Almost 6 million unique wallet addresses have interacted with LayerZero since its initial launch over two years ago. As we consider token distribution, a critical point is identifying the optimal set of users to bootstrap the network. Our conclusion is that it should be the most durable users, where durability is defined as those users most likely to continue to use the protocol or repeat past actions in the future.

Addressing Sybil Activity

A key challenge in achieving a healthy distribution is detecting sybil activities.

Examples of what we view as sybil activity within LayerZero are as follows:

• If you are a single entity with tens, hundreds, or thousands of addresses participating in industrial farming.
• If you minted a “valueless” NFT for the sole purpose of moving it around chains.
• If you have used popular “sybil farming” applications such as Merkly, L2Pass, L2Marathon, etc. For more information, read this tweet.
• If you bridged $0.01 back and forth across chains for the sake of having touched a chain.
• If you think you are a sybil, you are most likely a sybil.

We are giving all sybil users an opportunity to self-report within the next 14 days in return for 15% of their intended allocation, no questions asked.

If a sybil user does not self-report by the end of the 14-day period (May 17th 23:59 UTC), we will move into the following 2 phases:

• Phase 1: We will release our own list of all identified sybil users — those who are identified and did not self-report will receive nothing.
• Phase 2: We will open a bounty where users can submit detailed reports of sybil activity. A successful report will result in the sybil user receiving nothing, and the bounty hunter receiving 10% of the sybil’s intended allocation.

How to Self-Report Sybil Activity

If you are a sybil user and would like to self-report, here’s how:

1. Visit sybil.layerzero.network
2. Connect a wallet associated with sybil activity
3. Sign message to prove ownership of address
4. Repeat for all sybil addresses

For industrial sybil activities, we are also providing an API for mass reporting.

Note: All allocation eligibility will be subject to any legal or geographic requirements and each transaction is signed on-chain and should be considered permanent.

Conclusion

Our goal is to reward the durable users — protocols, users, and community members — who helped LayerZero succeed thus far and who will help the protocol expand in the future.

To everyone who has been part of this journey, thank you. This is only the beginning.

Stay tuned for more updates soon!