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

A number of Ethereum Layer 2 networks have hinted that they might launch their very own native tokens within the coming months, which might possible result in airdrops for early customers. Be a part of Crypto Briefing as we check out which one may very well be the primary to drag the set off. 

Arbitrum

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

Arbitrum’s builders have been tight-lipped about whether or not or not the undertaking will want a token, however a number of clues trace that one could also be coming within the not-so-distant future. 

Presently, Arbitrum’s transaction sequencing and proving are carried out solely by its creator, Offchain Labs. This measure was mandatory for the early levels of the chain’s growth to make sure stability, and has allowed Offchain Labs to react to repair points after they arose. 

Nonetheless, now that Arbitrum has been up and operating for over a 12 months and accomplished its current Nitro improve, Offchain Labs might quickly begin the method of opening the chain as much as decentralized sequencing. The Arbitrum creator has often said that its long-term plan will decentralize transaction sequencing to convey the Layer 2 extra according to the founding ideas of Ethereum. Nonetheless, guaranteeing that Arbitrum is each safe and decentralized isn’t any straightforward process. 

Many prominent figures within the crypto neighborhood have instructed that Arbitrum might launch a token to assist collateralize and incentivize decentralized sequencing. The Layer 2 may reward sequencers with tokens for serving to safe the chain, much like how Ethereum mainnet points ETH rewards to validators. There’s additionally scope for Offchain Labs to introduce a charge market the place sure providers require fee in Arbitrum tokens, making a sub-ecosystem on the chain. Offchain Labs may additionally use a token for on-chain governance; nonetheless, since Offchain Labs is a registered firm, it could be troublesome for it to go down this route with out falling foul of U.S. securities legal guidelines. 

In current months, Aribtrum has skilled an inflow of customers seeking to register exercise on the chain in hopes of receiving a token airdrop. Arbitrum’s closest competitor, Optimism, launched its personal token in Might this 12 months, with each early and frequent customers receiving a piece of OP tokens for his or her patronage. The Arbitrum Odyssey marketing campaign has additional heightened hypothesis that an Arbitrum token could also be within the playing cards. Nonetheless, with little official info, it stays unclear if (and when) Arbitrum will launch a token. 

StarkNet

Whereas an Arbitrum token is presently solely speculated, StarkWare’s StarkNet has already confirmed its plans to launch a token. 

In a sequence of weblog posts revealed in July, StarkWare introduced that decentralizing its StarkNet Layer 2 community would contain issuing a token for use because the community’s fee and staking asset. StarkNet is a Layer 2 community that makes use of Zero-Data Rollups to assist scale Ethereum. 

Just like how Offchain Labs presently handles all transaction sequencing on Arbitrum, StarkNet’s sequencing can also be centralized. Nonetheless, StarkWare intends handy off transaction proving and sequencing to its neighborhood to make the community safer and decentralized. The StarkNet token can be used within the community’s consensus mechanism each as staking collateral posted by sequencers and paid out as a reward to those that contribute to the community’s safety. 

Moreover, whereas StarkNet transaction charges are presently paid in ETH, StarkWare plans to change charges to StarkNet’s native token after its launch. As soon as this takes place, a portion of the charges paid by customers will even be redirected to stakers, simply as they’re on Ethereum mainnet. Allocating charges to stakers ought to proceed incentivizing decentralized sequencing lengthy after the utmost provide of 10 billion StarkNet tokens has been distributed. 

A ultimate deliberate use for the StarkNet token is in governance. Though StarkWare will keep possession of StarkNet, those that maintain the community’s token will be capable to assist resolve on its values and strategic targets by way of on-chain voting. The choices token holders may have sway over has not but been clearly outlined. Nonetheless, StarkWare has confirmed that token holders might want to approve main updates comparable to adjustments to StarkNet’s working system. 

Anybody seeking to qualify for an airdrop of the StarkNet token is probably going too late. In response to StarkWare, the token launch has been designed to primarily compensate core contributors and builders. Half the token provide has been allotted to early buyers, StarkWare workers and consultants, and StarkNet software program developer companions. Of the remaining 50%, 9% has been put aside as a neighborhood provision. 

Those that verifiably carried out growth work for StarkNet will obtain tokens alongside earlier StarkEx customers who used the scaling undertaking earlier than June 1, 2022. Which means that anybody who often used protocols comparable to dYdX, Immutable X, or Sorare may doubtlessly qualify for an allocation. 

Whereas StarkWare has not but confirmed a launch date, the July announcement mentioned that the StarkNet token would launch in September 2022. Nonetheless, whereas the contracts might go stay inside the subsequent few weeks, it’s possible that tokens gained’t correctly enter circulation till a later date. That’s as a result of most tokens can be locked and vested for at the least one 12 months from the StarkNet token genesis occasion. Anybody seeking to put money into the StarkNet token will possible have to attend till neighborhood provisions are distributed at a later date earlier than the market has ample liquidity to assist buying and selling.

zkSync

zkSync, one other Zero-Data Rollup undertaking working to scale Ethereum on Layer 2, may even have a token within the works. 

For the reason that early days of its growth, zkSync’s growth workforce Matter Labs has been clear about its intention to launch a token. In response to the undertaking’s developer documentation, zkSync will launch a local token that can be required to assist validate transactions on the Layer 2. Though no detailed details about how the token can be distributed and performance has been launched, zkSync will possible observe an identical path to StarkNet as each initiatives need to introduce a token to assist decentralization.  

When it comes to growth, zkSync is forward of StarkNet, having already launched a fully-composable Layer 2. Customers can bridge funds to the zkSync 1.0 mainnet and take part in a number of actions, comparable to buying and selling by way of ZigZag trade, taking part in video games on Tevaera, and donating to Gitcoin grants. Nonetheless, the 1.0 model lacks options like Validium, which might supply off-chain information availability, larger transaction throughput, and decrease charges. 

zkSync is presently growing a 2.0 model that can incorporate Validium below the identical zkSync API. zkSync 2.0 is presently within the testnet part of growth with a full launch scheduled for October. If the two.0 launch is profitable, Matter Labs might shift its focus to decentralization, possible within the type of decentralized sequencing and a local token. 

Nonetheless, since Matter Labs is but to launch particulars on the way it plans to decentralize zkSync, a token launch may very well be a great distance off. As such, these seeking to get in on a possible airdrop should have time to become involved and register exercise on the community. Utilizing zkSync 1.0 is probably going a very good place to begin; those that used it to donate to Gitcoin grants earlier than a deadline had been included in Optimism’s first token airdrop. Testing out zkSync 2.0 may be worthwhile. A number of DeFi and NFT apps have deployed contracts on the two.0 testnet, so interacting with every of them may additionally assist customers qualify for extra protocol-specific airdrops.

So, Which Ethereum Challenge Might Be Subsequent? 

If StarkNet can persist with its September estimate, it should nearly actually be the subsequent Ethereum Layer 2 to launch a token. Nonetheless, as a result of lengthy vesting schedule of the initially distributed tokens, it could be a while earlier than the StarkNet token neighborhood provision hits the market and gives ample liquidity for buying and selling. 

If this does find yourself being the case, token airdrops from Arbitrum or zkSync may finally steal the limelight from StarkNet with wider allocations to their communities. Though neither undertaking has made an official announcement, it doesn’t imply a token launch for both is essentially that distant. Tasks which are planning to airdrop tokens normally keep away from saying launch dates upfront to stop Sybil assaults from airdrop farmers. In Optimism’s case, the undertaking introduced its token round a month earlier than launch.

At their present growth charges, Arbitrum or zkSync may shock and launch their tokens forward of a full launch from StarkNet. Nonetheless, a token launch towards the tip of 2022 or early 2023 appears extra believable. Both approach, one factor is definite: Arbitrum, StarkNet, and zkSync have all dedicated to following Ethereum’s ethos and plan to optimize their networks for decentralization—and so they’ll all want their very own tokens to make that occur. 

Disclosure: On the time of penning this piece, the creator owned ETH and a number of other different cryptocurrencies.