From Governance to Real Utility: The Evolution of ZK Token

When ZK token was first launched, it served solely as a governance tool for the protocol. However, as the ecosystem has grown — particularly with the emergence of institutional solutions like Prividium — the vision for ZK has expanded beyond governance. The token is now positioned to become an economic driver of the entire network, capturing tangible value from both on-chain and off-chain activities.

Under the new model, revenue will be sourced from two main channels:

• On-chain revenues: Fees generated from transferring assets and messages between the ZKsync and Prividium networks (interoperability fees).

• Off-chain revenues: Licensing fees paid by financial institutions and enterprises for using advanced private modules and compliance systems.

All collected value will flow into a community-governed mechanism, which will allocate funds toward ZK token buybacks, token burns, staking rewards, and ecosystem development initiatives.

Goal: A Self-Sustaining and Economically Viable Ecosystem

According to Gluchowski, this new token model aims to make ZKsync economically self-sufficient. In this design, greater network usage directly translates into increased token demand, establishing a positive feedback loop that strengthens both token value and ecosystem sustainability.

Moreover, the proposal emphasizes the need for economic decentralization. By aligning developers, validators, and users around a single token-based economic model, ZKsync seeks to maintain credible neutrality and ensure that long-term growth remains community-driven rather than dependent on centralized actors.

Next Steps: Community Review and Implementation

The proposal is currently under discussion within the ZK Nation forum and across community channels. Once reviewed and approved through the governance process, the implementation phase will begin. Future updates are expected to provide more detailed frameworks regarding interoperability fee structures, enterprise revenue distribution, and token burn rates.

Initially launched as a simple governance token, ZK is now on the path to becoming the economic core of the ZKsync network — a system designed to align real-world usage with sustainable on-chain value creation.

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According to a framework proposed by Ethereum co-founder Vitalik Buterin, Starknet has now reached “Stage 1” decentralization, marking a shift to limited governance and operational independence.

And the timing couldn’t be better — Starknet has also emerged as the largest ZK-rollup-based layer-2 network by total value locked (TVL).

Starknet Leads ZK-Rollups With $629 Million TVL

With a TVL of $629 million, Starknet now outpaces close competitor ZKsync, which holds $610 million, as reported by L2Beat. This positions Starknet at the forefront of ZK-rollup technologies in terms of locked value, making it a benchmark among zero-knowledge scaling solutions.

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The project’s advancement to “Stage 1” decentralization was supported by technical measures like the implementation of a security council and censorship resistance mechanisms. Starknet has also adopted validity proofs, allowing cryptographic verification of all transactions via smart contracts — a core difference from the fraud-proof model used by Optimistic rollups.

Stage 2 In Sight, With Eyes On Bitcoin

StarkWare CEO Eli Ben-Sasson stated that the long-term vision is to reach “Stage 2” decentralization, where the network will be fully autonomous and community-driven. Only a few small layer-2 networks have achieved this so far.

Interestingly, Ben-Sasson also mentioned that Starknet’s ambitions extend to Bitcoin, suggesting parallel development on the world’s largest blockchain.

Currently, the entire layer-2 ecosystem holds around $44.2 billion in value, though it remains down 20% year-to-date. Base, Coinbase’s Optimistic rollup, leads the sector with $14.7 billion in locked assets, accounting for a 33% market share.

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Indexing data from major networks like Ethereum, the platform delivers it through a decentralized network of validators. Every data query is cryptographically verified via the Proof of SQL — a sub-second ZK coprocessor built to ensure tamper-proof transparency for smart contracts.

Big Players Are Already on Board: Microsoft, Chainlink, ZKsync…

According to co-founder Scott Dykstra, Space and Time is already being integrated by major institutions and cloud providers like Microsoft Azure, Google BigQuery, as well as leading crypto projects like Chainlink, Sui, and ZKsync. Developers can now securely connect cloud databases to smart contracts with cryptographic proofs.

The platform’s native utility token, SXT, is set to launch on May 8. As an open and permissionless network, the team encourages community members to join as validators and delegated stakers.

During its testnet phase, over 30 validators participated globally, including in the US, Europe, Asia, and Latin America.

Space and Time received strategic funding led by Microsoft in 2022, followed by a Series A round in 2024. MakeInfinite Labs, the core contributor, has also supported other notable projects such as Blitzar and the Chainlink DeFi Yield Index.

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The second season of ZKsync Ignite will not proceed as planned, and the program will be completely discontinued on March 17, 2025. As a result, the reward distributions expected in the sixth and final phase of the program’s first season have also been canceled.

Focus Shifts to Elastic Network Vision

The team highlighted that their long-term goal is now centered around the Elastic Network. This new architecture aims to build an ecosystem of interconnected chains based on Zero Knowledge (ZK) technology. In the statement, they noted, “Focusing our resources on Elastic Network development better aligns with our interoperability vision.”

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ZK Token Faces Major Price Drop

The ZK token had surged to $0.26 in December 2024. However, following the market downturn, the token’s value has decreased by 76%, currently trading at $0.06.

TVL Falls from $270 Million to $139 Million

The Ignite program had initially boosted DeFi Total Value Locked (TVL) to $270 million. However, according to the latest data from DefiLlama, ZKsync’s TVL has dropped to $139 million.

Ignite originally aimed to distribute 300 million ZK tokens over nine months. In its first season, 100 million ZK tokens were allocated to liquidity providers. At launch, these tokens were valued at $21 million, but at current prices, they are worth just $6.8 million.

Beyond ZKsync, the broader crypto market continues to experience a downturn. Bitcoin (BTC) is trading at $83,230, and Ethereum (ETH) at $1,900.

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“Treasure will be bringing the decentralized game console to the Elastic Chain,” the distributed autonomous company posted to X. “The community has voted overwhelmingly in favor (99.5%), to launch the Treasure L2 as part of the ZKsync ecosystem.”

The suggestion came before DAO members earlier this month. A statement said, “Plans to launch the Treasure chain as an L2 leveraging ZKsync’s ZK Stack technology instead of Arbitrum Orbit as previously planned.”

“A new public testnet called ‘Topaz’ is in progress to be launched,” Treasure DAO also said Monday. “This will let players and games start investigating and developing inside the new surroundings. Mainnet is scheduled for release in one and a half to two months.”

“The token swap will be executed between Treasure and the ZKsync Foundation in the upcoming days,” the DAO also wrote.

Treasure DAO also mentioned that it is helping its more than ten blockchain games on its Web3 gaming platform with the change “closely.”.

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“Built on a distributed approach that lets the community help to make collective decisions for the future of the protocol, the newly active governance system lets Aiming for a balanced distribution of governance power, this architecture is set around three major bodies: the Token Assembly, Security Council, and Guardians.” ZKsync stated in a blog post.

The design of the governing structure holds that no one party has total influence. Token Assembly lets token holders and their delegates suggest and cast votes on improvements straight forward. Security professionals on the Security Council can check and approve code revisions. The Guardians have veto authority to guarantee that all decisions complement the central ideals of the ZKsync ecosystem.

In March 2023, Matter Labs debuted their Era mainnet. The project unveiled comprehensive designs for its governance system in June 2024, and the ZK token was issued along with an airdrop. Daily transactions in the network have clearly dropped since then. From over 1.3 million to about 195,000 now, the seven-day moving average of the daily transaction count on the ZK Rollup has dropped by almost 85%.

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The popular decentralized exchange, PancakeSwap, has made an airdrop announcement. Accordingly, PancakeSwap has announced its plans to distribute 2.45 million zkSync (ZK) tokens to its community.

Decentralized exchange PancakeSwap will distribute 2,452,128 zkSync (ZK) tokens to its community via airdrop.

“We are excited to announce that PancakeSwap will be airdropping 2,452,128 million ZK tokens directly to our community. The ZKsync airdrop is structured to reward long-time contributors who have supported our journey and new participants who are actively engaged with PancakeSwap.

Airdrop distribution is currently open to eligible CAKE Holders, Liquidity Providers, Active Traders, Traverse Campaign Participants, zkSync Prediction Users and some zkSync voters.”

Finally, reminding that the airdrop claims opened on July 5, 2024 at 10:30 UTC and will close on August 5, 2024 at 10:30 UTC, the PancakeSwap team stated that “All unclaimed tokens during this period will be reallocated to the PancakeSwap ecosystem for future development and community initiatives.”

While the ZK token has seen an increase in the last few hours following the airdrop news, this increase has been overshadowed by the Bitcoin (BTC) and general market decline.

zkSync (ZK) is currently trading at $0.146 at the time of writing.

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BLAST’s price has since increased by over 40%, reaching $0.0281 at the time of writing, according to CoinMarketCap data.

This comes in contrast to recent high-profile token launches, including those from Ethereum layer-2 networks zkSync (ZK) and LayerZero (ZRO). Both tokens have seen their prices fall by 46% and 43%, respectively, since their launches.

The airdrop accounted for 17% of BLAST’s total supply, with 7% going to users who bridged Ether to the network.

An additional 7% was allocated to users who contributed to decentralized applications (DApps) on the network, while 3% went to the Blur Foundation for future airdrops.

Blast airdrop becomes a target for scammers

Like other notable airdrops this year, Blast’s airdrop event has also attracted the attention of many scammers.

Scammers often target hyped-up airdrops because airdrops typically require crypto users to connect their wallets and sign transactions to claim their allocated tokens.

Cryptocurrency security service Scam Sniffer has identified a user who fell victim to a Blast airdrop scam and lost over $217,000 after signing multiple phishing signatures.

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ZKsync Trading Pairs on Binance

Starting on Monday UTC at 8 a.m., ZK will be accessible for spot trading alongside BTC, USDT, FDUSD, and the Turkish Lira. Binance customers can now deposit ZK in readiness, the exchange stated in the statement. According to the exchange, withdrawals would be accessible one day following the listing. The listing is planned to arrive one hour following the start of the real ZKsync airdrop.

Apart from the ZK trading pair listing, Binance revealed a token distribution initiative in view of the community criticism directed at the ZK airdrop. It intends to distribute 10.5 million ZK tokens across 52,500 users, approximately.

Users of the Binance ZK token distribution scheme had to have started at least 50 ZKsync Era transactions between February 2023 and March 2024 to be qualified. Still, these purchases have to be spaced over at least seven separate months within that period. Users also cannot have claimed any ZK tokens via the official ZK Nation airdrop program.

First Airdrop Scheduled for June 25

The first token airdrop is scheduled for June 25, Binance said; eligible addresses will be handed ZK first come, first served.

First revealed by the ZKsync Association last week, the exchange noted in the announcement that there are “ongoering concerns” from the community concerning ZK token distribution. Social media channels saw different responses to the ZK listing; some called the ZKsync initiative a “scam.”

The objection seems to be related to the absence of steps in the airdrop program to filter Sybil attacks, in which individuals create many false identities to obtain more tokens while farming the airdrop tokens.

“Most farmable and farmed airdrop ever probably—aalmost no Sybil filtering as far as I can see,” Polygon’s chief information security officer, Mudit Gupta, posted on X the day after the ZKsync Association’s revelation.

In response to the criticism, the ZK team commented on X last week, acknowledging that the plan offended the community but stating that the team would stick to its chosen course. It provided a set of FAQs stating that the airdrop did not reveal any significant problems.

ZKsync (ZK) Listing Postponed

“Fellow Binancians, The trading start time for ZKsync (ZK), originally set at 2024-06-17 08:00 (UTC), will be further postponed to 2024-06-17 10:00 (UTC).” Binance stated.

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Ethereum zero-knowledge (ZK) layer-2 scaler zkSync has received backlash from crypto industry observers for allegations of unfair distribution and lack of safeguards against Sybil attacks in the airdrop for its eponymous token zkSync (ZK).

Mudit Gupta, information security chief of rival layer-2 network Polygon, shared on the X platform on June 11, “zkSync airdrop has been released. “Possibly the most farmable and farmable airdrop ever,” he wrote. “From what I can see, there is almost no Sybil filtering. Anyone who knew the criteria could easily farm it.”

Earlier that day, zkSync shared that 695,232 wallets could request the ZK token airdrop and seven eligibility criteria intended to protect against Sybil attacks. Sybil attacks involve an entity using multiple wallets to manipulate crypto airdrops.

“This was not a well-planned airdrop from a Sybil perspective,” said Cinneamhain Ventures partner Adam Cochran, sharing zkSync’s eligibility criteria. “These criteria were easy to miss as a real user and easy to meet as a farmer and there was no anti-Sybil program.”

These reactions resulted in crypto analytics firm Nansen clarifying that it did not conduct anti-Sybil checks for the ZK token airdrop or advise on allocations, but did provide data on some specific wallet segments such as “whales and known fraudsters.”

However, crypto researcher “Ignas” stated that zkSync deliberately does not implement stringent anti-Sybil measures, noting in the press release that “Sybil detection often excludes real users with arbitrary filters.”

Based on ZK’s price on pre-market perpetual exchanges such as Aevo and PancakeSwap, the tokens could be worth $52.3 million.

The token has lost nearly 43% of its value in the last 24 hours on both markets, with the sharp declines coinciding with zkSync’s announcement of airdrop details.

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