LayerZero (ZRO) Price Slumps as Fee Vote Looms – Brace for Massive Token Unlock
LayerZero's native token takes a hit as investors weigh governance risks and impending supply shock.
Market jitters strike ahead of fee structure vote
The protocol's decentralized governance faces its first major stress test as ZRO holders prepare to decide on transaction fee distributions. Meanwhile, the ticking clock on a cliff unlock threatens to flood the market with new tokens—because nothing says 'decentralization' like VC insiders cashing out.
Tokenomics turbulence ahead
With the unlock's magnitude undisclosed but hinted to be 'huge,' traders are pricing in the classic crypto trifecta: dilution fears, weak hands folding, and opportunistic accumulation by whales. The price action suggests many are opting for the 'buy the rumor, sell the news' strategy—or in this case, 'sell before the unlock wreck.'
LayerZero token unlock
While the intraday dip was relatively mild and in line with broader crypto market turbulence, LayerZero is facing a significant token unlock .
🟣 Weekly Insider Unlocks : 16 – 22 June '25
🔥 230.0m+ 🔥
Insider Unlocks Highlights 🔓:$FTN (4.66%) – $89.00m$ZRO (21.63%) – $46.40m$ZK (20.91%) – $37.90m$ARB (1.91%) – $31.63m$ID (11.23%) – $7.94m#MELANIA (6.58%) – $6.61m
.
( % of cir. supply) pic.twitter.com/BoCdU9FYQQ
This could deepen the bearish outlook, with details from Tokenomist showing the blockchain platform is poised for $46 million worth of ZRO entering circulation.
The LayerZero unlock is scheduled for June 20, potentially adding further downside pressure. According to Tokenomist, the expected ZRO unlock will account for 23.13% of the circulating supply.
“$ZRO leads this week in terms of unlock size relative to its circulating supply. This event marks the very beginning of insider unlocks, covering allocations to strategic partners and Core contributors,” analysts at Tokenomist said in a post on X.
A key factor in the upcoming unlock is that insiders control more than 50% of the total supply. Beginning June 20, 2025, the protocol will enter a two-year monthly vesting period. This creates a supply overhang that investors will closely monitor as it could influence market reaction to ZRO price action.
ZRO holders to vote
Also in the spotlight for LayerZero on June 20, 2025 is a vote by ZRO holders. Voting will remain open until June 27, with the community deciding whether to activate a protocol fee.
If the proposal passes, activation WOULD see LayerZero implement a protocol fee on every network message. The collected fees would be used to buy back and burn ZRO tokens.
The quorum for the vote is set at 50.40%, with a simple majority required for approval.
