Binance Announces ZK Token Distribution Program to Address Community Concerns

Binance has launched a ZKSync (ZK) token distribution program to address ongoing community concerns. Scheduled from June 17, 2024, at 02:00 UTC to July 16, 2024, at 23:59 UTC, this initiative aims to alleviate tensions from prior distributions.

It will distribute 10,500,000 ZK tokens, potentially benefiting up to 52,500 users.

Eligibility requires participants to have conducted at least 50 transactions on the ZKSync Era network originating from their address between February 2023 and March 2024. Additionally, these transactions should have been spread over seven distinct months within this period, excluding self-transfers.

Eligible addresses must not have received tokens from the official ZK Nation airdrop and must not be contract, CEX, or bridge addresses.

Read more: Best Upcoming Airdrops in 2024

To claim the tokens, users must deposit a minimum of 0.02 Ethereum (ETH) from an approved ZKSync Era address to Binance. The deposit size does not impact the quantity of ZK tokens awarded. Distribution will follow on a first-come, first-served basis, granting 200 ZK tokens per successful Binance User ID (UID) claim.

Previous dissatisfaction among community members stemmed from insufficient safeguards against Sybil and perceived unfairness in token distribution. This unrest escalated when the hashtag #ZKsyncScam trended on social media, last week.

This was the community’s reaction to allocation methods and the transparency of the airdrop process.

Significant platforms on the ZKsync Era, such as Element, the largest non-fungible token (NFT) marketplace, have openly criticized their exclusion from the airdrop benefits. Element, which drove nearly 70% of the platform’s total trading volume until June 12, voiced its frustration on social media.

Similarly, other major contributors like ZKApe and DMail expressed disbelief at their exclusion despite high user engagement and transaction activity.

In response to this backlash, Binance’s revised token distribution strategy seeks to reestablish trust and stability within the ecosystem. Moreover, it will list the ZK token on June 17, 09:00 UTC.

Read more: What Is zkSync?

Binance users can trade various ZK trading pairs such as ZK/BTC, ZK/USDT, ZK/FDUSD, and ZK/TRY. Crypto traders such as Axel Bitblaze have articulated their strategies based on the fully diluted valuation (FDV).

“If ZK launches at an FDV of over $15 billion, I’m selling everything to buy lower below $10 billion later. If there is a launch below $7 billion, I’m holding. Finally, if ZK token trades above $20 billion FDV, I’m shorting aggressively,” Axel Bitblaze said.

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