Farmers seize Ethereum Layer 2 token launch through airdrop

The Ethereum Layer 2 network Scroll has just launched its highly anticipated airdrop of the SCR token. However, some apparent beneficiaries of the event have expressed their disappointment. The project’s initial airdrop distributed 5.5% of the total supply of SCR, which amounts to 55 million tokens out of a total of 1 billion, to early users who have contributed to the ecosystem, according to a blog post by the team. Scroll stated in its announcement that out of this number, 40 million SCR was granted to on-chain participants who obtained 200 or more Scroll tokens or points through the use of the second-layer scaling network. Another 1% was evenly distributed to eligible wallets, and an additional 0.5% was allocated as a “bonus” to individuals who met the selection criteria. However, some users were not pleased, as crypto Twitter (also known as “CT”) was flooded with memes and complaints about the allegedly meager amounts they received. An anonymous Twitter user and Ethereum user, DYOR.eth, claimed to have dumped the tokens and completely abandoned Scroll, calling it “one of the worst airdrops of all time.” Twitter user Joshyy also posted about the upcoming airdrop, accumulating a significant number of followers and referring to it as “the worst airdrop to date.” Other tweets mocked the claims about the expected scale and value of the Scroll airdrop. Airdrops are a technique used by new projects to attract users by distributing free tokens or coins, with the hope of growing their community and rewarding early adopters and contributors. However, the practice of “airdrop farming” has become increasingly common, as some users attempt to maximize their rewards by using multiple different wallet addresses and/or repeating certain tasks and activities they believe will increase token allocations. Some of these users and farmers have been complaining about receiving small amounts of cryptocurrency in airdrops, despite their participation in a project’s community. Similar complaints arose when the highly anticipated airdrop for the game Hamster Kombat was launched in September, with some describing the modest rewards as “dust.” Following the airdrop, the value of the SCR token plummeted, with CoinGecko data showing a 16% drop since the airdrop, bringing the price down to $1.17. This is common for newly launched tokens, which can be highly volatile, particularly when airdrop recipients cash out and traders may buy in the midst of the chaos. Scroll did not immediately respond to Decrypt’s inquiries about the airdrop. Scroll is one of several Layer 2 networks on Ethereum. These networks are used to improve the functionality of the chain by essentially relying on the security of the main network while often offering benefits such as cheaper and faster transactions. Ethereum, the blockchain behind the second-largest cryptocurrency, ETH, has sometimes struggled with slow and expensive transactions during peak times, making the network difficult to use. Recently, the popularity of Layer 2 networks has surged to the point where some industry observers believe they are siphoning value away from ETH, despite other benefits. Editor: Andrew Hayward