Scroll, the Native zkEVM on Layer 2 for Ethereum, has been criticized by its community due to its current token distribution plan. The protocol allocated 5.5% of its new SCR token to the Binance Lounge Pool, infuriating many critics. This action would benefit large investors in Binance, the world’s largest crypto exchange.
On Tuesday morning, a prominent DeFi researcher remarked on this situation, stating that it was “crazy” that 5.5% of the total supply was allocated to Binance whales for merely two days of farming.
imagine farming scroll more than 1 years ++ will be front running by some whale on binance (launchpool) 😂😂
spent gas,doing some quests,mind badge like russel only get pennieshttps://t.co/tYun2fTQEy pic.twitter.com/MsOcYvQ4Lt
— GM ♦️ (@gmaazs) October 8, 2024
Many community members took 2X to reveal their discount with the SCR token launch, stating, “Imagine farming scroll more than 1++ [and being front-run] by some whale on Binance,” tweeted @gmaazs, who is the community manager for AirDrop finder, an X-based AirDrop locator.
On Tuesday, Scroll published a blog post indicating that 35% of the 1 billion token supply of SCR will be allocated to the ecosystem and growth, 23% to Scroll contributors, and 17% to investors. 15% was to be allocated for airdrops, and 10% to the Scroll foundation itself.
Of the 35% earmarked for ecosystem and growth, it was revealed that 5.5% was reserved for the Binance launch pool and pre-market trading at the SCR launch.
The decision to allocate tokens to the Binance launch pool was to attract global users by utilizing Binance’s peer-to-peer services. The blog post on Scroll read, “By collaborating with finance, we are value-aligned to support the global community, particularly in the global South, by offering more accessible on-off ramp solutions.”
Only 7% of the 15% of crore allocated for airdrops will be dispersed this week. However, the remaining 8% will be awarded at an unspecified “future” date mentioned in the blog post.
Ryan Dennis, the director of communications at Scroll, said, “We’ve designed Scroll to be a chain for the people—user-friendly and easy to navigate, ensuring a smooth experience for all. Our collaboration with global exchanges is key to this mission,” in line with Scroll’s decision to allocate tokens to the Binance launch pool.
