What is LayerZero? Information about ZRO Token

Table of Contents

What is LayerZero?

LayerZero is an innovative cross-chain infrastructure protocol that supports decentralized applications (dApps) with omnichain interoperability capabilities. This project aims to simplify the process of sharing and transmitting information between blockchains, addressing the challenges of secure and efficient data exchange.

Instead of relying on traditional cross-chain bridges, which have raised security concerns, LayerZero provides a seamless and secure solution for messaging between users and dApps across multiple blockchains.

How does LayerZero work?

LayerZero V1

LayerZero V1 leverages omnichain infrastructure to facilitate the rapid and convenient transfer of native tokens between blockchains through cross-chain bridges. Unlike the multichain model, which requires compatibility among chains (e.g., those supporting the Ethereum Virtual Machine), the omnichain approach allows for interaction with any blockchain without needing mutual compatibility.

Rather than creating wrapped tokens to transfer assets across networks, LayerZero enables direct asset transfers between blockchains using Endpoints, which act as the receivers and senders of information.

The off-chain components, Oracle and Relayer, play crucial roles in processing and ensuring the accuracy of transmitted information. Currently, Chainlink provides Oracle services for LayerZero, while Relayer is an internally developed service by LayerZero.

LayerZero V2

In LayerZero V2, the protocol has enhanced its process for message verification and execution. Now, the Security Stack handles message verification, and the Executor is responsible for executing the messages. These improvements bolster the security and performance of the protocol, offering a smoother user experience.

Key Features of LayerZero

Low Cost, High Security

LayerZero uses an upgraded version of the two traditional cross-chain bridge models: On-chain Light Node and Middle Chain. Ultra Light Nodes, LayerZero’s hybrid solution, combine the high security of On-chain Light Nodes with the low deployment cost of Middle Chain, providing an optimal balance between security and cost efficiency.

Modular Design and Scalability

LayerZero’s design is modular and decentralized across chains through endpoints—smart contracts that perform essential functions and support operations. Each endpoint is divided into four main modules: Communicator, Validator, Network, and Library. This modular architecture allows LayerZero to add and store new chains easily, without impacting other parts of the system, enhancing scalability and flexibility compared to conventional bridges.

Team

Caleb Banister (Co-Founder): A computer science graduate from the University of New Hampshire, Caleb has extensive experience in software development and startups in the cryptocurrency space before founding LayerZero Labs.

Bryan Pellegrino (Co-Founder & CEO): Also a computer science graduate from the University of New Hampshire, Bryan has a deep background in founding and developing technology projects, including OpenToken and Rho AI.

Ryan Zarick (Co-Founder & CTO): Holding both a bachelor’s and master’s degree in computer science from the University of New Hampshire, Ryan has previously served as CTO at Buzzdraft and founded multiple tech companies before co-founding LayerZero Labs with Bryan and Caleb.

Investors

LayerZero has successfully raised over $263 million across several funding rounds, attracting investments from major funds like A16z, Sequoia Capital, Multicoin Capital, and Binance Labs, highlighting the project’s significant future potential.

April 1, 2021: Seed round raised $2 million.
September 16, 2021: Series A raised $6.3 million, led by Multicoin Capital and Binance Labs.
March 30, 2022: Series A extension raised $135 million, valuing LayerZero at $1 billion.
July 18, 2022: Investment from Christie’s in a private round with undisclosed details.
April 4, 2023: Series B raised $120 million, valuing LayerZero at $3 billion.

What is ZRO Token?

Basic Information

Token Name: LayerZero
Token Symbol: ZRO
Blockchains: Ethereum, Arbitrum, Optimism, …
Smart Contract Address: 0x6985884C4392D348587B19cb9eAAf157F13271cd (ETH)
Total Supply: 1,000,000,000 ZRO

ZRO Token Allocation

Ecosystem Fund: 25%
Airdrop: 19% (including 5% for IDO)
Core Contributors: 19%
Investors: 17%
RPGF: 20%

ZRO Token Release Schedule

At the time of the Token Generation Event (TGE), there will be 250 million ZRO in circulation, with 20% allocated to the community, 5% held by the project, and 8.5% reserved for the most liquid airdrops.

Use Cases of ZRO Token

ZRO Token is used for governance, allowing holders to vote on important project decisions.

Trading of ZRO Token

ZRO Token is currently traded on major exchanges like Binance, OKX, Bybit, etc.

Roadmap

LayerZero is continuously updating its development roadmap, promising new features and improvements in the future.

Potential Evaluation

Despite facing issues related to Sybil attacks and community criticism over airdrops, LayerZero maintains a prudent token vesting strategy, keeping the circulating supply stable in the first year. This approach could help the project appreciate in value during the upcoming market uptrend.

By strategically unlocking 25% of the total supply initially, LayerZero avoids the “Low Supply/High FDV” trend prevalent in new projects, reducing profit-taking pressures from investors and creating a safer investment environment.

Project Information Channels

Website: https://layerzero.network/
Twitter: https://twitter.com/LayerZero_Labs
Discord: https://discord-layerzero.netlify.app/discord

Conclusion

This article provides a detailed overview of LayerZero and ZRO Token. If you have any questions or need further information, please leave a comment, and we will be happy to assist!