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Critics Question EtherFi Airdrop Amid Allegations of Whale Favoritism

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Etherfi’s liquid restaking platform recently faced backlash regarding its airdrop distribution after reports emerged that Justin Sun would get a substantial part of the tokens.

On March 16, EtherFi revealed that the first phase of its airdrop will release 6% of the total token supply. ETHFI will have a total supply of 1 billion tokens, with an initial circulating supply of 115.2 million.

Criticism Trails EtherFi Airdrop Distribution

Ether.Fi outlined several criteria to determine eligibility for their airdrop, including holding eETH, referring friends to the protocol, or participating in the Early Adopter Program.

Upon closer examination, community members swiftly discerned that Justin Sun, the founder of the TRON network, stands to obtain roughly 3.5 million ETHFI, equating to 2% of the initial allocation of 60 million tokens.

Community members have speculated that these tokens could be worth as much as $20 million. This allotment would serve as a reward for his recent deposit of 20,000 ETH to the protocol. Some criticized this, pointing out the potential exploitation by whales.

According to the critics, whales could amass significant rewards by farming large amounts, leaving early project contributors with meager rewards.

“The airdrop is divided with 85% allocated to the top 500 wallets, while the remaining 15% goes to over 70,000 wallets (literally where we all fall in sadly)… This points system seems like a game for whales. Probably on-chain tasks or something should help. I’m not sure what happened here or why this even happened, but other restaking platforms should definitely learn from this,” renowned airdrop hunter Abraham Chase wrote.

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Author: Oluwapelumi Adejumo

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