Liquid Restaking platform Renzo has now adjusted its airdrop details, increasing the allocation in the first season from 5% of tokens to 7%. This change came in response to user dissatisfaction with the tokenomics details.
7% of the tokens will be distributed in the first phase – going live at the end of the month – and 5% in the subsequent phase. A total of 12% of the 10 billion supply will be allocated to users’ airdrops, Renzo noted.
The claim date for the first airdrop has been moved to April 30 – strategically set an hour before the protocol’s listing on the Binance exchange – a shift from the previously outlined schedule.
Under the new criteria, participants with a minimum of 360 Renzo points will be eligible for the airdrop, which they can claim during the token generation event, proportionally based on their points count.
Previously, the top 5% of eligible wallets had acquired half of their airdrop over the next six months. In the new update, 99% of all eligible wallets will be fully unlocked at launch.
The changes came after Renzo redeployed ether ( ezETH
-3.58%
), a liquid re-recording token issued by Renzo, decoupled from the price of ether amid an unexpected drop and lost up to 18% of its parity with ETH. Although the token has recovered significantly since yesterday, it is still trading at a 2% discount.
The protocol’s initial tokenomics, presented in a pie chart, led to clear frustration within the user community.
The team also disqualified airdrop farmers who had participated in ‘looping’ – a leverage strategy in which ezETH is sold for ETH and then re-deposited into the protocol to generate more rewards. This led to users withdrawing by selling large amounts of ezETH.
ezETH’s big sell-off was exacerbated by limited on-chain liquidity, resulting in a sharp decline in its token value. The cascade of liquidations caused by this sell-off led to more than $50 million in losses for individuals with leveraged ezETH positions.
The token price now appears to be moving closer to parity with ETH, trading at $3,053, according to The Block’s price page.
Renzo raised $3.2 million in a seed funding round in January. According to The Block’s data dashboard, there is more than 1 million ether ($3 billion) tied up in the protocol, which is the second largest liquid withdrawal platform.
