Renzo, a decentralized liquidity protocol, announced on the 24th the details of its native token, REZ, and its tokenomics. However, the community expressed dissatisfaction with the initial airdrop ratio of only 10% of the total supply. In response to the community’s feedback, Renzo announced on the 25th that they would increase the airdrop ratio to 12%.
According to the updated documentation by Renzo, participants will receive a 7% airdrop during the first season, which was previously set at 5%. The airdrop ratio for the second season remains at 5%, resulting in a total airdrop of 12% of the total supply for the two seasons. Additionally, the claim period for the airdrop has been moved forward from May 2nd to April 30th.
Renzo’s X account tweeted, “We hear you. The Renzo team acknowledges the community’s feedback and its importance.” This indicates that the community’s dissatisfaction with the initial 5% allocation for the first season prompted the team to modify the distribution ratio.
In response, on-chain researcher 0xTodd expressed on the X platform that the project needs a community that is almost cult-like.
The updated documentation by Renzo provides the following rules and tokenomics for the airdrop:
Airdrop Rules:
Snapshot and Claim Timeline:
Snapshot date: April 26, 2024
Claim date: April 30, 2024 (1 hour before REZ token listing on Binance)
Airdrop Allocation:
First season: 7% of the total supply, with 0.1% allocated to the Milady Maker and SchizoPosters communities (increased from 5% to 7%)
Second season: 5% of the total supply (unchanged)
The claim period for the first season airdrop is 1 month, and unclaimed REZ will be used for the second season.
Airdrop Eligibility:
The minimum threshold to receive the airdrop for each wallet is 360 ezPoints, and 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, with the remaining 50% linearly released within 3 months.
Tokenomics:
Total token 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 (reduced from 13.44% to 12.44%)
DAO Treasury: 20% of total supply
Liquidity: 1.5% of total supply (reduced from 2.5% to 1.5%)
Although adjusting the airdrop ratio aligns with the interests of participating users, it has led to mockery from onlookers who question the reliability of the tokenomics, saying, “Can tokenomics be changed so easily? And they dare to call themselves Web3…” This move undoubtedly diminishes the protocol’s credibility among users.
Furthermore, Renzo’s liquidity token, ezETH, briefly decoupled from its peg to a low of 0.2132 WETH on the 24th. It has since recovered to 0.9823 WETH. The decoupling may be related to a series of liquidations in the lending protocol Morpho. Gearbox, a protocol offering up to 9x leverage for ezETH, also mentioned the negative impact caused by the decoupling of ezETH and the community’s dissatisfaction with the airdrop distribution.
Whether Renzo can successfully regain user confidence and overcome the negative effects caused by the decoupling of ezETH and the dissatisfaction with the airdrop distribution remains to be seen.