Arbitrum like category based distribution

Token Design
2

Why Arbitrum-Like Category-Based Distribution Is Not Always the Best Approach

While Arbitrum’s airdrop model was successful, it set a precedent that industrial farmers quickly adapted to. After its success, many large-scale farming operations built sophisticated metric systems to mimic eligibility criteria, allowing them to exploit future airdrop models.

1. Industrial Farmers Now Game Category-Based Distributions

After the Arbitrum airdrop, farming operations began:

  • Systematically identifying eligibility metrics from previous airdrops.
  • Automating transaction patterns to ensure they meet the thresholds without real engagement.
  • Creating thousands of wallets to distribute activity, making it appear organic.

Because of this, category-based models no longer accurately capture real users, they are now optimized for by those who are not genuinely invested in the ecosystem.

2. A Category-Based Model Can Misrepresent True Contribution

The problem with a category-based model is that it assumes generalized behaviors define contribution. For example:

  • If one criterion is “number of transactions,” farmers can artificially generate thousands of low-fee transactions.
  • If it’s “days of activity,” they can automate small interactions to stay eligible without meaningful engagement.
  • If it’s “TVL or staking,” they can temporarily move funds just to qualify.

These behaviors are not a true reflection of commitment to the ecosystem** they are optimized strategies to extract value.

3. LXP Is a More Controlled and Transparent Contribution Metric

Unlike Arbitrum’s broad category-based approach, LXP was designed as a structured, long-term participation system. It ensured that:

  • Participants engaged in verifiable activities that directly benefited the ecosystem.
  • Industrial farmers couldn’t easily game the system by simply spamming transactions or moving funds around.
    Although there was a high sybil activity after the upgrade where the fee became almost non existent attracting a lot of industrial farmers but the team is already taking action through their partnership with nansen in which over 500k sybils were identified
  • This is evident from popular airdrops like zksynk and layerzero where industrial farmers mimic the arbitrum model which can be seen from the highest number of clusters identified
  • Those who contributed at the right time were rewarded fairly, instead of retroactively fitting into a generalized model.

In summary : A One-Size-Fits-All Model No Longer Works

Arbitrum’s method worked before industrial farming became as sophisticated as it is today. Now, broad category-based models are easily gamed, less effective at identifying real contributors, and vulnerable to exploitation.

A structured, transparent, and controlled metric like LXP remains one of the best ways to ensure that real contributors not opportunistic farmers receive fair rewards.
Also with the allowance of up to 20 wallets, then no one will disagree that the only fair and transparent token distribution has to be tired (Hybrid) except for those running a farm

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