LayerZero (ZRO): how it works, supply and reviews
In short
- Type
- Omnichain messaging protocol with an immutable, permissionless Endpoint contract on each chain
- Maximum supply
- Fixed at 1 billion ZRO
- Risks and caveats
- Security depends on each application's DVN configuration; the default configurations use LayerZero Labs as a required DVN and as the Executor.
- Checked
- 31 October 2026
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Key facts
- Ticker
- ZRO
- Official site
- layerzero.network
Key facts checked on 31 October 2026 against official sources.
What is LayerZero
LayerZero is a cross-chain messaging protocol: each supported blockchain has an immutable Endpoint contract, and applications choose their own set of Decentralized Verifier Networks (DVNs) to verify messages between chains. ZRO is the protocol's token, used to vote in fee switch referendums.
Network and consensus
| Parameter | Details |
|---|---|
| Type | Omnichain messaging protocol with an immutable, permissionless Endpoint contract on each chain |
| Verification | Messages are verified by an application-configured set of DVNs (X of Y of N threshold), then executed, typically by an Executor |
| Connected chains | 150+ blockchains, including Ethereum, L2s, Solana and Aptos (December 2025) |
| Launched | V1 released in 2022; V2 launched in 2024 |
Supply and issuance
| Parameter | Details |
|---|---|
| Maximum supply | Fixed at 1 billion ZRO |
| Initial distribution | 38.3% community, 32.2% strategic partners (3-year unlock), 25.5% core contributors (3-year vesting), 4.0% repurchased and pledged to the community |
| Airdrop | 8.5% of supply was claimable by eligible participants from 20 June 2024 |
| Fee burn | If ZRO holders approve the fee switch in a referendum (held every six months), protocol fees would be used to buy back and burn ZRO |
What ZRO is used for
- Governance: ZRO holders vote in the fee switch referendum held every six months
- Network operations and governance, according to the LayerZero Foundation
Who develops and governs LayerZero
- Developer
- LayerZero Labs; whitepaper authors Ryan Zarick, Bryan Pellegrino, Isaac Zhang, Thomas Kim and Caleb Banister
- Foundation
- LayerZero Foundation supports decentralisation and ecosystem growth and manages the 14.5% ecosystem allocation
- Governance
- Fee switch referendums decided by simple majority if quorum is met; LayerZero Labs, the Foundation and affiliates abstain
- Upgradeability
- Immutable endpoint with append-only verification modules; protocol code is published on GitHub (LayerZero-Labs/LayerZero-v2)
History
| Date | Event |
|---|---|
| 2022 | LayerZero V1 is released. |
| 2024 | LayerZero V2 launches. |
| 20 June 2024 | ZRO token launches with a 1 billion fixed supply; 8.5% is claimable by eligible users after a Sybil-filtering process. |
| 20 December 2025 | Third fee switch referendum opens for ZRO holders (quorum 40.59% of circulating ZRO). |
| 20 June 2026 | Fourth fee switch referendum scheduled. |
Security and audits
- LayerZero Labs publishes audit reports on GitHub; the Endpoint V2 (EVM) contracts were audited in December 2023 by Zellic, OtterSec, Paladin, Certora, Blockian, C. Michel and Windhustler, with a Paladin diff review in June 2026.
- ZRO claim contracts were audited in June 2024 by Paladin, Pashov and Hexens.
- Each application sets its own security stack; LayerZero docs advise production apps to require at least one DVN not operated by LayerZero Labs.
Security incidents
| Date | What happened | Source |
|---|---|---|
| 18 April 2026 | Hack: LayerZero's incident report says the KelpDAO rsETH bridge built on LayerZero lost 116,500 rsETH (about $292 million): an attacker socially engineered a LayerZero Labs developer, moved into LayerZero's RPC cloud environment and poisoned internal RPC nodes so that the LayerZero Labs DVN attested a forged cross-chain message. LayerZero says the impact was limited to KelpDAO's rsETH configuration. Funds returned: not stated | layerzero.network |
Further incidents are reported by third parties (press, incident databases) but are not confirmed in the company’s own channels, so they are not listed here.
Risks and caveats
- Security depends on each application's DVN configuration; the default configurations use LayerZero Labs as a required DVN and as the Executor.
- 57.7% of ZRO went to strategic partners and core contributors with three-year unlock or vesting schedules.
- The protocol fee and ZRO buyback-and-burn only apply if a fee switch referendum passes; otherwise fees stay off.
Official links
- Website: layerzero.network
- Docs: docs.layerzero.network
- Whitepaper: layerzero.network/publications/LayerZero_Whitepaper_V2.1.1.pdf
- Source code: github.com/LayerZero-Labs/LayerZero-v2
- Block explorer: layerzeroscan.com
- Audits: github.com/LayerZero-Labs/Audits
- Foundation: layerzero.foundation
Questions and answers
What is LayerZero?
LayerZero is a cross-chain messaging protocol with an immutable Endpoint contract on each of 150+ supported chains; applications choose which verifier networks (DVNs) confirm their messages.
What is the ZRO token used for?
ZRO holders vote in fee switch referendums, held every six months, on whether to turn on a protocol fee used to buy back and burn ZRO.
What is the supply of ZRO?
The ZRO supply is fixed at 1 billion tokens; 38.3% was allocated to the community, 32.2% to strategic partners, 25.5% to core contributors and 4% was repurchased.
Who created LayerZero?
LayerZero is developed by LayerZero Labs; its whitepaper is authored by Ryan Zarick, Bryan Pellegrino, Isaac Zhang, Thomas Kim and Caleb Banister.
Has LayerZero been audited?
Yes. LayerZero Labs publishes audit reports on GitHub, including December 2023 audits of Endpoint V2 by Zellic, OtterSec, Paladin and Certora.
Sources
- LayerZero — Home
- LayerZero — About
- LayerZero — Whitepaper V2.1.1 (PDF)
- LayerZero Docs — Protocol overview
- LayerZero Docs — Security stack (DVNs)
- LayerZero Foundation — Home
- LayerZero Foundation — Introducing ZRO (Wayback snapshot)
- LayerZero Foundation — Fee switch referendum #3 (Wayback snapshot)
- LayerZero Labs GitHub — Audits
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