Record fee revenue on Arbitrum network after LayerZero (ZRO) launch

The June 20 launch of LayerZero (ZRO) significantly increased fees on the Arbitrum (ARB) network, resulting in a record daily revenue of $3.43 million, marking a 16,680% increase from the previous day.

LayerZero is a multichain protocol that aims to improve network interoperability by allowing developers to create more versatile and efficient applications.

The release of ZRO included controversial mechanism for "giving', requiring applicants to spend a small amount on a token to secure a portion of an allocation. This mechanism caused average gas fees on the blockchain to jump to 89 cents from less than 1 cent usually.

Consequently, the profits of Arbitum rose to $3.29 million for the day, setting another record, according to data from Dune Analytics and DefiLlama.

LayerZero required those wishing to receive ZRO to donate $0.10 each USDC , USDT or ETH for each ZRO, with the proceeds going to the Protocol Guild, a fundraising mechanism that supports Ethereum developers.

LayerZero defended this approach by arguing that airdrop events do not meet their goals of fair distribution, community building, and protocol sustainability, as many of the token recipients from these events have no long-term interest in the project.

That event marked Arbitrum's highest daily gross since December 14, when the network earned $2.13 million.