Scroll Layer 2 Announces the Launch of $SCR Token
The token will be launched on Binance Launchpool, and there will also be an airdrop for early supporters.
As part of its initial step towards decentralization, the Scroll Layer 2 blockchain has announced the launch of its governance token, $SCR. This token will be distributed to the community through an airdrop for early users and the Binance Launchpool. The team plans to allocate 15% of the total supply for the airdrop, with 7% earmarked for distribution on October 22, 2024.
However, the public response has been critical of the allocation. Many are frustrated by receiving only 7%, despite their two years of activity on the network, while Binance farmers in the Launchpool, who have not previously used Scroll, are set to receive 5.5% of the supply.
$SCR
— Blur (@BlurCrypto) October 8, 2024
7% to users who have been active for 2 years
5.5% to Binance farmers who have never used Scroll
Snapshot announced as not yet taken
Expectations were low, but man oh man pic.twitter.com/mdr1ErQlLH
The primary utility of the $SCR token will be for governance, akin to most other Layer 2 solutions, with the team planning to introduce additional, yet undisclosed, use cases in the future.
Scroll has significantly grown since its mainnet launch in 2023, ranking as the sixth-largest blockchain by Total Value Locked (TVL), with $1.26 billion in assets transferred to its network. Currently, Scroll processes approximately 300,000 daily transactions and has around 5.8 million registered addresses.
These figures reflect its average performance, especially when compared to the leading Layer 2 network, Arbitrum, which handles about 2 million daily transactions and boasts around 40 million active addresses.
According to DefiLlama, around 100 applications are live on Scroll, prominently including DeFi platforms offering yield farming, lending, and trading services. Most of these applications provide use cases similar to those available on other Layer 2 solutions or directly on Ethereum Layer 1, indicating that Scroll has yet to introduce novel offerings. Earlier this year, one of the applications on Scroll, a lending protocol Rho Markets, experienced a significant security breach.
Technologically, Scroll stands out as one of the few Layer 2 networks that have developed a zkEVM. As a zk-Rollup, integrating the Ethereum Virtual Machine (EVM) has been a challenge; however, Scroll has successfully achieved this. A few other teams have also managed to integrate EVM with zk-Rollups, including Immutable and Polygon.
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zk-Rollups are a Layer 2 scaling solution for blockchains that bundle multiple transactions into a single, off-chain computation proof verified on-chain, significantly reducing the amount of data that needs to be processed by the main blockchain. They use zero-knowledge proofs to ensure the validity of these transactions without revealing any underlying sensitive information. In contrast, Optimistic Rollups assume transactions are valid by default and use a challenge period during which incorrect transactions can be contested to maintain security.
For instance, Starknet, another zk-Rollup, does not integrate EVM, posing a steeper learning curve for Ethereum developers transitioning to its platform.
Currently, in the pre-market, the Scroll token is trading at approximately $1.30, which translates to a fully diluted valuation of around $1.3 billion. Considering that the circulating supply will be 19% of the total 1 billion supply following the launch, the token is expected to trade at a valuation of above $200 million.
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