Scroll Launches SCR Token on Binance Launchpad

Scroll, a Layer 2 Ethereum scaling solution utilizing Zero-Knowledge Ethereum Virtual Machine (zKEVM) technology, is launching its token on Binance Launchpad. This initiative was announced as part of the project’s "first step towards decentralization" on Tuesday.

A total of 1 billion SCR tokens will eventually enter circulation:
– 15% reserved for at least two planned community airdrops over the next 18 months.
– 25% earmarked for funding projects developing on Scroll.
– 20% allocated between the Scroll DAO Treasury and Scroll Foundation.
– The remaining 40% will be split between investors (17%) and contributors (23%).

The team stated, "We have thoughtfully designed our token distribution to maximize impact for our community and expand our global reach with applications and services," via an announcement on X.

Token launches serve to incentivize community development and governance, allowing cryptocurrency holders to have a stake and a voting mechanism in the project.

Out of 53 Layer 2s tracked by CoinGecko, Scroll is among the last to release a token. Scroll stated, "SCR plays an important role in achieving this mission, particularly concerning core protocol design and the long-term sustainability of the Scroll ecosystem," highlighting its importance for the project’s provers and sequencer, which organize transactions.

Furthermore, the SCR token will act as the primary governance tool for the protocol. The team aims to decentralize the proving and sequencing processes, currently managed by holders of the project’s multi-sig.

They emphasized, "The protocol must be designed to incentivize external parties to run provers and optimize for the best prover performance" in their documentation.

"Importantly, SCR opens up new design spaces and unlocks features that can enhance user experience while converting all Scroll users into owners and guardians of the Scroll protocol," the team added.

The airdrop eligibility deadline, marking the last date users can engage with the protocol to claim their tokens, is set for Oct. 19. The first airdrop is planned shortly afterward, with claims opening on Oct. 22.