Renzo's token economics is under controversy, and the "dissatisfied" angrily smashed ezETH, triggering a decoupling

Author: BlockBeats, Rhythm

On April 23, according to the official announcement, Binance's new coin mining launched the 53rd project, using BNB and FDUSD to mine Renzo (REZ). A small twist is that Renzo's native token was originally called EZ, but it was renamed to REZ just a few hours after the Binance mining announcement was released. According to the official rules, the Renzo Season 1 incentives will end on April 26, and users who sell their ezETH holdings before this date may not be eligible for the airdrop. Users can claim REZ through the official claim website on May 2.

Related article: Analysis of Binance's Latest Project Renzo: Token Economic Model and Valuation Expectations

However, last night, the token economics of Renzo sparked controversy. The total supply of REZ tokens is 10 billion, with an initial circulating supply of 1,050,000,000 REZ, accounting for 10.50% of the maximum supply. The specific allocation mechanism is as follows:

• Investors and advisors will receive 31.56%;
• The team will receive 20.00%;
• The DAO treasury will receive 20.00%;
• The foundation will receive 13.44%;
• Airdrops will receive 10.00%;
• Binance Launchpool will receive 2.50%;
• Liquidity budget will receive 2.50%;

In the first version of the announcement released by Renzo, the pie chart of token allocation is as follows. It is evident that the person who created the chart "didn't learn math well," as they depicted the two 2.5% shares almost the same as the 20%, while the bottom "half" is 62%. The community bluntly stated that this is "chart crime, no different from falsifying token economics."

Subsequently, Renzo officially deleted the announcement, but has not yet updated the new token allocation. However, what made the market even more indignant is that Renzo's token allocation is also unsatisfactory. Crypto KOL @WazzCrypto retweeted the original announcement stating, "They even boast about 'protocol decentralization,' but only airdrop 5%. This is completely a joke, as 70% of the supply is still in the hands of insiders."

Some even mockingly updated the token allocation pie chart for Renzo. "Almost all tokens are prepared for the team; this is one of the most manipulated token economics in history," social media is flooded with dissatisfaction regarding Renzo's token allocation.

In addition, another dramatic event for Renzo occurred earlier today, where due to insufficient liquidity and large sell orders, the Renzo LRT token ezETH briefly depegged to $688. As of the time of writing, the EZETH/WETH liquidity pool is only $3.2 million, and EZETH is quoted at $3148.58 on Uniswap's Ethereum mainnet.

During the depeg, a whale used 2,400 ETH to buy 2,499 ezETH, worth $6.98 million, netting a profit of 99 ETH. This depeg event also made the community aware of the risks associated with LRT, as the DeFi composable leverage protocol Gearbox stated that some users were liquidated due to the ezETH depeg.

According to Nancen data, in the past 24 hours, the contract addresses marked as Morpho: Morpho Blue and Zircuit: LST Staking Pool have seen outflows of 5,806 and 6,010 ezETH, respectively.

This series of events has led to a negative attitude in the community towards Renzo's airdrop. As the EigenLayer mainnet gradually goes live, related LRT projects are beginning to accelerate the pace of token launches, but how the market performs in the future remains to be seen.