Re-staking faces first depegging risk, Renzo token economics sparks controversy

On April 23, according to the official announcement, Binance's new coin mining launched its 53rd project, allowing users to mine Renzo (REZ) using BNB and FDUSD. There was a small twist where Renzo's native token was originally called EZ but was renamed to REZ a few hours after Binance's mining announcement. According to the official rules, 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 on the official claim website on May 2.

However, last night, Renzo's tokenomics sparked controversy. The total supply of REZ is 10 billion tokens, with an initial circulating supply of 1,050,000,000 REZ, accounting for 10.50% of the maximum supply. The 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%;

· The airdrop will receive 10.00%;

· Binance Launchpool will receive 2.50%;

· The liquidity budget will receive 2.50%;

In the first version of Renzo's announcement, the token allocation pie chart clearly showed that the chart maker "didn't learn math well," as the two 2.5% shares were drawn almost the same size as the 20% shares, while the bottom "half" was labeled as 62%. The community bluntly called this "chart crime, no different from tokenomics fraud."

Subsequently, Renzo's official team deleted the announcement but has yet to update the new token allocation. What further angered the market was that Renzo's token allocation was also unsatisfactory. Crypto influencer @WazzCrypto reposted the original announcement, saying, "Still boasting about 'protocol decentralization'? Only 5% airdrop? This is a complete joke—70% of the supply is still in the hands of insiders."

Some even mockingly updated Renzo's token allocation pie chart. "Almost all tokens are reserved for the team. This is one of the most manipulated tokenomics ever," social media was flooded with dissatisfaction over Renzo's token allocation.

In addition to this, another dramatic event involving Renzo occurred earlier today. Due to insufficient liquidity and large sell orders, Renzo's LRT token ezETH briefly depegged, plummeting to $688. As of press time, the EZETH/WETH liquidity pool was only $3.2 million, with EZETH quoted at $3,148.58 on Uniswap's Ethereum mainnet.

During the depegging, a whale bought 2,499 ezETH with 2,400 ETH, worth $6.98 million, netting a profit of 99 ETH. This depegging incident also made the community aware of the risks associated with LRTs. DeFi composable leverage protocol Gearbox stated that some users were liquidated due to ezETH's depegging.

According to Nancen data, over the past 24 hours, addresses labeled as Morpho: Morpho Blue and Zircuit: LST Staking Pool saw outflows of 5,806 and 6,010 ezETH, respectively.

This series of events has led the community to take a negative view of Renzo's airdrop. As EigenLayer's mainnet gradually goes live, related LRT projects are accelerating their token launches. However, the market's performance in the future remains to be seen.