30s Summary

Scroll’s co-founder and CEO, Sandy Peng, refuted allegations of predatory token dumping following a controversial launch in October. Peng detailed future plans for the Ethereum-based company, including feedback-driven updates and internal restructuring. Her statement followed accusations from rival developer Rushi Manche that Scroll unfairly distributed and dumped tokens. She insisted that their giveaway only included a small portion set aside for themselves, with most used to ensure good liquidity. The company’s SCR token will be key in the governance of Scroll’s future development, while the company competes with rivals in the layer-2 market, working on a zero-knowledge rollup.

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The co-founder of Scroll, a company built on Ethereum’s layer-2 network, has shot down accusations suggesting a predatory October token launch. In a blog post dated Nov. 28, Sandy Peng dismissed the allegations as baseless.

Peng, also the CEO of Scroll, noted that they’re taking feedback from the community seriously and plan to address concerns in their future airdrop known as Session 2.

Scroll is also making internal changes to align with future plans. Some team members will be moving on from the company, according to Peng.

Back in October, Scroll launched their own token, SCR. The launch was controversial with allegations of token dumping by the core team. This led to a 32% drop in the token’s price on the first day since Scroll had given a large number of SCRs to a few lucky wallets, causing dissatisfaction among airdrop participants.

Rushi Manche, co-founder of a blockchain developer competitor, described Scroll as a problematic player in a Nov. 27 post. He accused Scroll of executing airdrops to their own wallets then dumping them.

In response, Peng stated that Scroll only allocated a small number of Marks, used to set airdrop allocations, to its own wallets. The majority were used to provide liquidity for decentralized exchanges. Peng also admitted that it would have been better to remove Marks for more clarity.

The total supply of SCR tokens is 1 billion. It will serve as the primary governance mechanism for the Scroll protocol as the platform continues to decentralize. The allocation is as follows: 15% for airdrops, 35% for ecosystem growth, 17% for investors, 10% for the Scroll Foundation, and 23% for contributors.

Scroll is presently a rival to layer-2s like ZKsync Era and Starknet, operating as a zero-knowledge rollup. These types of rollups are expected to replace optimistic rollups as Ethereum’s core scalability solution.

Layer-2s are often faster at finalizing transactions with others, such as Movement Labs, also stepping up their game. Aylo, a pseudonymous crypto researcher, noted that 23 out of the 31 tokens distributed in large airdrops have lost value since their first day of listing, sometimes by quite a bit.