Renzo Protocol has boosted the token allocation for its initial airdrop from 5% to 7% following community dissatisfaction. The distribution will occur in two phases: 7% in the first season by month-end and 5% in a subsequent phase.
Renzo, the liquid restaking platform, has made changes to its airdrop plan, increasing the token allocation in the first season from 5% to 7%. This adjustment was made after users expressed dissatisfaction with the tokenomics details.
Renzo Adjusts Airdrop Details in Response to Community Feedback
Updated Token Distribution Plan: Renzo has revised its airdrop plan, increasing the token allocation in the first phase from 5% to 7%. This adjustment aims to address user dissatisfaction with the tokenomics details. The distribution will occur in two phases: 7% in the first phase, scheduled to go live at the end of the month, and 5% in the subsequent phase.
Rescheduled Claim Date and Eligibility Criteria: The claim date for the first airdrop has been rescheduled to April 30, strategically set an hour before the protocol’s listing on the Binance exchange. Under the new criteria, participants with at least 360 Renzo points are eligible for the airdrop, which they can claim at the token generation event based on their points tally.
Vesting Changes and ezETH Depegging: Earlier, the top 5% of eligible wallets had half of their airdrop vested over the next six months. However, in the new update, 99% of all eligible wallets will be fully unlocked at launch. These changes come after Renzo-restaked ether (ezETH) experienced a depeg from the price of ether, leading to unexpected losses and frustration within the community.
Renzo Responds to Airdrop Farming and ezETH Depegging
Renzo’s team took action against airdrop farmers who engaged in ‘looping,’ a leverage strategy involving selling ezETH for ETH and then redepositing it into the protocol to earn more rewards. This practice prompted users to exit the platform by selling significant amounts of ezETH.
The large sell-off of ezETH was worsened by the thin on-chain liquidity, resulting in a sharp decline in the token’s value. The cascade of liquidations triggered by this sell-off caused over $50 million in losses for individuals with leveraged ezETH positions.
The token price is now approaching parity with ETH, trading at $3,053. Renzo secured $3.2 million in a seed funding round in January. Additionally, the protocol boasts over 1 million ether ($3 billion) locked in, making it the second-largest liquid restaking platform.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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