Highlights:
- Scroll’s $SCR launch boosts engagement but sparks user dissatisfaction over allocation.
- TVL drops sharply as airdrop farmers exit, highlighting short-term participant behavior.
- Partnership with Binance raises centralization concerns despite Scroll’s defense of the move.
Scroll launched its native token, $SCR, today. This launch aims to reach out to its global user base, ensuring inclusivity. By using $SCR, Scroll aims to reward contributors and develop a decentralized community.
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This is in line with its vision of providing growth opportunities for all its worldwide supporters. Scroll is the leading zero-knowledge rollup for Ethereum. Trading pairs that will be available after the listing on Binance are SCR/BTC, SCR/USDT, SCR/FDUSD, and SCR/TRY.
Scroll officially launches $SCR, bringing seamless payments with @Scroll_ZKP to the forefront. 🌐💳
The future of decentralized transactions is here—are you ready? 🌟📜#Scroll #POS25 #Crypto #Web3 pic.twitter.com/Ffh8KKySf8
— POS25 (@POS_25) October 22, 2024
Airdrop Rewards Target Contributors and Supporters
Scroll designed the airdrop to recognize active contributors and community members. The program includes individuals involved in on-chain activities and projects built on the platform. The reward also includes theoretics, zero-knowledge researchers, and developers. This also includes public goods organizations as well as global community organizers. The initiative also emphasizes the importance that Scroll’s community plays in building its ecosystem.
Moreover, Scroll also launched Scroll Open, a funding program to assist creative developers. This program has the potential to provide allocations of up to $100 million. Scroll aims to encourage more expansion and innovation by promoting development.
User Frustration Grows Over Allocation Concerns
Even with the launch, many users are dissatisfied. There have also been concerns raised over the token distribution, as many have argued it does show favoritism to the insiders. According to them, the Scroll team allocated 23% of the tokens for themselves. Multiple users say that each team’s address has received more than one million rounds, a major cause for concern on equity.
Scroll just proved that airdrop farming isn’t worth it anymore ❌
Most lucrative airdrops came from unanticipated projects, before anyone thought airdrops could be profitable.
Now it’s just a waste of time. Hours in front of the screen and hundreds paid in fees for just $20 💀
— Sebastian (@Sebastian_npn) October 22, 2024
Users have turned to social media to voice their discontent. They claim that there was a lack of transparency in the process and that fairness was not a priority. This feeling has sparked discussions within the community, with several people feeling excluded by the distribution of tokens.
Scroll’s TVL Drops After Surge
The total locked value of Scroll had increased before the airdrop. The total value locked has increased to $995.75 million by October 17. The airdrop excitement fueled the surge. The rise was short-lived when numerous airdrop farmers left the platform immediately after acquiring their tokens.
The total value locked (TVL) of Scroll has decreased to $819.55 million. The decrease is a result of short-term participants joining for the airdrop incentives. The airdrop farmers redeemed their rewards and then later withdrew their assets.
The huge withdrawals led to a sudden drop in TVL. Scroll appears to have used the airdrop snapshot strategy which offers the participants a chance to win free tokens. However, this strategy dilutes the rewards of loyal users. The drop in the TVL shows the limitations crypto launches face in transitioning short-term interest into sustained growth.
Scroll recently entered into a partnership with Binance to aid in its global growth. Some in the community are concerned with this choice as they view it as another step towards centralization. The partnership tilts towards the major investors and away from decentralization principles.
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