Liquid re-staking platform Renzo has now adjusted the airdrop details, increasing the allocation for the first season from 5% to 7% of tokens. These changes were made in response to user complaints about token economics details.
7% of tokens will be distributed in the first phase (activated at the end of the month) and 5% in subsequent phases. A total of 12% of the 10 billion supply will be allocated to user airdrops, Renzo said.
The first airdrop claim date has been rescheduled to April 30th, strategically set to be one hour before the protocol’s listing on the Binance exchange. This is a change from the schedule previously described.
As per the new criteria, participants holding at least 360 Renzo Points will be eligible to receive an airdrop, which they can claim in the token generation event proportionally based on their points tally.
Previously, the top 5% of eligible wallets secured half of the airdrops over the next six months. The new update will fully unlock 99% of all eligible wallets at launch.
This change is due to Renzo’s re-staking Ether ( ezETH
-3.41%
), a liquid re-staking token issued by Renzo, which was pegged from the price of Ether due to an unexpected decline. Parity with ETH has been lost by up to 18%. Although the token has recovered significantly since yesterday, it is still trading at a 2% discount.
The initial token economics of the protocol, presented through a pie chart, caused obvious frustration within the user community.
The team also disqualified airdrop farmers who engaged in ‘looping’, a leveraged strategy of selling ezETH for ETH and then re-depositing it into the protocol to earn more rewards. This led to users selling large amounts of ezETH and leaving.
The massive sell-off of ezETH was exacerbated by lack of on-chain liquidity, causing the token value to fall sharply. As a result of the series of liquidations triggered by this sale, individuals who leveraged ezETH positions suffered losses of more than $50 million.
According to The Block’s pricing page, the token price now appears to be trading at $3,053, on par with ETH.
Renzo raised $3.2 million in a seed funding round last January. According to The Block’s data dashboard, the protocol has more than 1 million Ethereum ($3 billion) locked up, making it the second-largest securitization resale platform.
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