Scroll, a leading Ethereum layer-2 scaling solution, has faced criticism for its decision to allocate 5.5% of its total token supply to Binance. In response to questions about the deal, Scroll Co-Founder Ye Zhang defended the move, citing the importance of Binance’s support for stablecoins in emerging markets.
“Binance’s support for stablecoins is crucial, especially in Africa where it holds more legitimacy than Ethereum,” Zhang explained. “This partnership will provide a lot of other support besides listing, and strong CEX support is essential for attracting users to the Ethereum ecosystem.”
Zhang also addressed concerns about the timing of the deal, stating that the current market dynamics make it difficult to secure deep support from centralized exchanges. “We have to decide between moving fast now or potentially waiting another 6-12 months for uncertain support,” he said.
The co-founder emphasized that the allocation to Binance is part of a broader strategy to drive global expansion and growth for the Scroll ecosystem. He also clarified that the launch pool allocation does not impact the amount of tokens reserved for the community airdrop.
“Token distribution is a growth lever that helps with protocol decentralization and governance,” Zhang concluded. “We expect the community that trusts us to hold, and distribution will stabilize in a healthy way.”
