Catalysts

Historical events that we have taken into account

1. Airdrop Farming

Airdrop programs are the most common victims of sybil attacks. Throughout the history of airdrops, we have seen several strategies being implemented to prevent such sybil attacks, but most them have been quite unsuccessful. According to reports, even after utilizing community reports & ML/AI algorithms to detect bot on-chain activity, only a small portion of the actual sybil volume were identified, leaving masses of sybil account exploit the airdrop causing huge financial losses. Moreover, in the past reported Sybil accounts even threatened to poison other wallets, which could disrupt the entire community-led & on-chain footprint based sybil resistance effort. With more transparency in these ML-AI algorithms, sybil attackers reverse engineer such algos to build fake legitimate looking on-chain footprint which breach through such systems.

2. NFT Scalping

NFT scalping is the process where bots get NFT whitelists or purchase underpriced or newly released NFTs faster than real users. Then hold of the supply, leading to scarcity of supply, inflated prices, and reduced accessibility for genuine collectors, manipulating the market and depleting UX. MadLads NFT drop recently was heavily botted leading to delays and honeypotting of legitimate users.