Renzo announced the details of the REZ token airdrop and token economics model yesterday (24th), with an airdrop ratio of only 10% of the total supply, which caused dissatisfaction among the community. Today (25th), Renzo announced once again that the airdrop ratio will be increased to 12%.
Summary:
What is Renzo, the liquidity repledge protocol on Binance’s new Launchpool? REZ token economics? BNB once reached a high of 620 USD.
Background:
The repledge race is heating up! Binance Labs invests in Renzo Protocol again.
Table of Contents:
Increase in airdrop ratio to 12%, due to community pressure?
Renzo’s updated airdrop rules and token economics
Sarcasm: Is this still Web3?
Liquidity token ezETH once dropped to 0.2 WETH
Renzo, the Ethereum liquidity repledge protocol, announced the details of the REZ token airdrop and token economics model yesterday (24th), with an airdrop ratio of only 10% of the total supply, which caused dissatisfaction among the community. Today (25th), Renzo announced once again that the airdrop ratio will be increased to 12%.
According to the updated Renzo documentation, the first season will airdrop 7% to participants. Previously, the airdrop allocation for the first season was 5%. As for the second season, the airdrop ratio remains at 5%. In total, both seasons will airdrop 12% of the total supply to participants. Additionally, the airdrop claim period has been moved up from May 2nd to April 30th.
Interestingly, Renzo’s X account tweeted: “We hear your voice. Renzo team acknowledges the feedback and importance of the community.” This shows that the community was very dissatisfied with the 5% allocation in the first season of Renzo’s activity, prompting the team to modify the distribution ratio.
In response, on the X platform, on-chain researcher 0xTodd tweeted:
And stated that the project needs a cult-like community.
According to the updated Renzo documentation, the airdrop rules and token economics of Renzo are as follows:
Airdrop Rules:
Snapshot and claim schedule:
Snapshot date: April 26, 2024
Claim date: April 30, 2024 (1 hour before REZ token listing on Binance)
Airdrop allocation:
First season: 7% of total supply, with 0.1% allocated to Milady Maker and SchizoPosters community (increased from 5% to 7%)
Second season: 5% of total supply (unchanged)
The claim period for the first season’s airdrop is 1 month. Unclaimed REZ will be used for the second season’s activity.
Airdrop eligibility:
The minimum threshold for wallet holders to receive the airdrop is 360 ezPoints. Over 99% of wallets will be fully unlocked at the Token Generation Event (TGE).
Wallets with over 500,000 ezPoints will have 50% unlocked at TGE, and the remaining 50% will be released linearly within 3 months.
Token Economics:
Total supply: 10,000,000,000
Initial circulating supply: 1,050,000,000
Binance Launchpool: 2.5% of total supply
Airdrop: 12% of total supply (increased from 10% to 12%)
Investors and advisors: 31.56% of total supply
Team: 20% of total supply
Foundation: 12.44% of total supply (decreased from 13.44% to 12.44%)
DAO Treasury: 20% of total supply
Liquidity: 1.5% of total supply (decreased from 2.5% to 1.5%)
Although adjusting the community airdrop ratio aligns with the interests of participating users, it also led to mockery from bystanders: “Is token economics something that can be changed so easily? Still have the audacity to call yourself Web3…” This undoubtedly reduces the credibility of the protocol among users.
In addition, Renzo’s liquidity token ezETH briefly dropped to a low of 0.2132 WETH on the 24th, but has since stabilized at 0.9823 WETH. The reason for the drop may be related to a series of liquidations caused by the lending protocol Morpho. Gearbox, the protocol that offers up to 9x leverage on ezETH, also mentioned:
The drop in liquidity token ezETH, coupled with dissatisfaction among the community regarding the airdrop allocation, has had a negative impact. Whether Renzo can successfully restore user confidence remains to be seen.
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