Vote to Decide the Fate of Binance-Listed Altcoin Coming Soon

LayerZero (ZRO), an omnichain interoperability protocol, has announced a public vote scheduled for December 19, where ZRO holders will vote on the activation of a fee switch mechanism.

According to LayerZero‘s official documentation, ZRO holders have perpetual authority over the accumulation and management of protocol fees. An immutable voting contract mandates a public, on-chain referendum every six months to decide whether to enable or disable the protocol’s fee switch.

If enabled, the fee switch will allow LayerZero to collect fees equivalent to the costs associated with verifying and executing cross-chain messages. For example, an application using a particular Data Verification Network (DVN) and executor configuration that charges $0.01 for transactions between Arbitrum and Optimism may see LayerZero impose an additional $0.01 fee.

If the referendum is passed, the fees collected will be governed by a financial contract and burned on the native chain, reducing the circulating supply of ZRO tokens and potentially increasing their value.

*This is not investment advice.