Which Ethereum Layer 2 Will Be Next to Airdrop a Token?

Several Ethereum Layer 2 networks have hinted that they may be able to launch their own native tokens in the coming months, which could lead to airdrops for early users.joining crypto briefing We’ll see who can pull the trigger first.

Arbitrum

One of the most anticipated Layer 2 tokens is that of Arbitrum, an Ethereum Optimistic Rollup solution created by Offchain Labs.

Arbitrum developers have been tight-lipped about whether the project will need tokens, but there are some clues that suggest they may need tokens in the not-too-distant future.

Currently, Arbitrum’s transaction ordering and proofing is done exclusively by its creator, Offchain Labs.This measure was necessary to ensure stability in the early stages of the chain’s development and allowed Offchain Labs to react to fix the issue. when they wake up.

However, more than a year has passed since Arbitrum started operation, and recent nitro upgrade, Offchain Labs could soon begin the process of opening up the chain to decentralized sequencing. frequently stated that they would be closer to But ensuring Arbitrum is secure and decentralized is no easy task.

many Celebrity The crypto community has suggested that Arbitrum may issue tokens to collateralize and incentivize decentralized sequencing. Layer 2 could reward the sequencer with tokens for securing the chain, similar to how the Ethereum mainnet issues validators his ETH reward. Offchain Labs also has room to create sub-ecosystems on-chain by introducing fee markets where certain services require payment in his Arbitrum tokens. Off-chain labs can also use tokens for on-chain governance. However, since Offchain Labs is a registered company, it may be difficult to follow this route without violating US securities laws.

In recent months, Aribtrum has experienced an influx of users trying to register activities on the chain in hopes of receiving an airdrop of tokens. Arbitrum’s closest competitor, Optimism, launched its own token in May of this year, and both early and frequent users received chunks of his OP his token for sponsorship.of Arbitrum Odyssey Campaign There is further speculation that Arbitrum tokens may be included in the card. However, with little official information, it remains unclear if (and when) Arbitrum will issue tokens.

Starknet

The Arbitrum token is currently only speculation, but StarkWare’s StarkNet has already confirmed plans to issue the token.

In a series of blog posts published in July, StarkWare announced Decentralization of the StarkNet Layer 2 network includes the issuance of tokens that will be used as payment and staking assets for the network. StarkNet is a Layer 2 network that utilizes zero-knowledge rollups to help scale Ethereum.

Similar to how Offchain Labs currently handles all transaction sequences on Arbitrum, StarkNet sequences are also centralized. However, StarkWare plans to hand over transaction proofs and sequencing to the community in order to make the network more secure and decentralized. StarkNet tokens are used as staking collateral posted by sequencers in the network’s consensus mechanism and are paid out as rewards to those who contribute to the network’s security.

Additionally, while StarkNet transaction fees are currently paid in ETH, StarkWare plans to switch fees to StarkNet’s native token after launch. Once this is done, a portion of the fees paid by users will also be redirected to stakers, just like on Ethereum mainnet. The allocation of fees to stakers should continue to encourage decentralized sequencing even after the maximum supply of 10 billion StarkNet tokens has been distributed.

The ultimate use of StarkNet tokens is governance. StarkWare will retain ownership of his StarkNet, but those who hold the network’s tokens can help determine its value and strategic goals through on-chain voting. The decisions that token holders make and take are not yet clearly defined. However, StarkWare has confirmed that the token holder must approve major his updates, such as changes to StarkNet’s operating system.

For those looking to qualify for the StarkNet token airdrop, it’s probably too late. According to StarkWare, the token launch is primarily designed to reward core contributors and developers. Half of the token supply has been allocated to early investors, StarkWare employees and consultants, and StarkNet software development partners. Of the remaining 50%, 9% are set aside as community provisions.

Those who have verifiably performed development work on StarkNet will receive tokens along with previous StarkEx users who used the scaling project prior to June 1, 2022. This means that anyone who has frequently used protocols such as dYdX, Immutable X, Sorare, etc. could potentially qualify for quota.

StarkWare has yet to confirm a launch date, but an announcement in July said StarkNet tokens would launch in September 2022. At a later date. This is because most tokens will be locked and granted for at least one year after the StarkNet token generation event. Those considering investing in StarkNet tokens may have to wait until community rules are distributed at a later date before the market has sufficient liquidity to support trading.

zkSync

zkSync, another zero-knowledge rollup project working to scale Ethereum at Layer 2, is also developing a token.

Since the early days of development, zkSync’s development team, Matter Labs, has been transparent about its intentions to launch the token. According to the project Developer documentation, zkSync invokes the native token required to validate the transaction at layer 2. No details have been made public about how the tokens will be distributed and how they will work, but zkSync could follow a similar path to StarkNet, as both projects hope. Introduce tokens to aid decentralization.

In terms of development, zkSync is ahead of StarkNet and has already launched a fully configurable Layer 2. A user can bridge funds to his zkSync 1.0 mainnet and participate in several activities such as trading through the ZigZag exchange, playing games on Tevaera, and donating. For Gitcoin grants. However, the 1.0 version lacks features such as Validium that can provide off-chain data availability, higher transaction throughput, and lower fees.

zkSync is currently developing a 2.0 version that incorporates Validium under the same zkSync API. zkSync 2.0 is currently in the testnet stage of development, with a full release scheduled for October. If the 2.0 launch is successful, Matter Labs could shift its focus to decentralization, perhaps in the form of distributed sequencing and native tokens.

However, Matter Labs has not yet released details of zkSync’s decentralization plans, so the token launch could be a long way off. So those looking to participate in a potential airdrop may have time to join the network and register their activity.Using zkSync 1.0 is a good place to start. One who used it to donate to her Gitcoin grant before the deadline, Optimism’s first token was included in his airdrop. It may also be worth testing zkSync 2.0. Several DeFi and NFT apps are deploying contracts on his 2.0 testnet, so interacting with each of them could allow users to qualify for additional protocol-specific airdrops. There is also

So which Ethereum project will be next?

If StarkNet can stick to its September quote, it will almost certainly become the next Ethereum Layer 2 to issue tokens. However, due to the long vesting schedule of the first tokens distributed, it may be some time before the StarkNet Token Community offerings hit the market and provide sufficient liquidity for trading.

If this is the case, an airdrop of tokens from Arbitrum or zkSync could eventually get the limelight from StarkNet with wider allocation to the community. Neither project has made an official announcement, but the launch of either token isn’t necessarily too far away. Projects planning to airdrop tokens usually avoid announcing the launch date in advance to prevent Sybil attacks on him from airdrop farmers. For optimism, The project announced its token about a month before launch.

At the current rate of development, Arbitrum or zkSync could surprise launch the token ahead of its full launch from StarkNet. However, a token launch towards the end of 2022 or early 2023 seems more plausible. Arbitrum, StarkNet, and zkSync all follow the spirit of Ethereum and plan to optimize their networks for decentralization, and they need their own tokens to make that happen.

Disclosure: At the time of writing this article, the author owned ETH and several other cryptocurrencies.