21 Billion ZkSync Tokens to Hit Market: What to Know

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21 Billion ZkSync Tokens to Hit Market: What to Know – Crypto News

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1 year ago

May 22, 2024

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ZkSync is preparing for its token generation event (TGE) this week, with a token launch and airdrop expected soon. The total supply of ZkSync tokens will be 21 billion. The ticker symbol ZK is intended, despite complications with Polyhedra Network. Decentralization efforts are ongoing, with an upgrade planned to expedite the process.

ZkSync’s TGE and Airdrop Set for June

ZkSync is all set to conduct its highly anticipated TGE this week. Subsequent to the TGE, there will be an issuance of tokens and token distribution or ‘airdrop,’ which is estimated to occur on June 8. Overall, the circulating amount of ZkSync tokens is set to be 21 billion. As for existing ticker symbols, it has become challenging to assign ZkSync the symbol of ‘ZK’ because Polyhedra Network was previously using this symbol. But even then, ZkSync may choose to go with ZK anyway, especially since, for the record, Polyhedra’s token is not listed on Binance.

Following the first public launch of its Era mainnet in March 2023, the decision to issue tokens within a year has drawn much interest. This policy, along with the airdrop platform, has gained much traction among crypto investors. The maximum amount of TVL in ZkSync was around $200 million, but as of now, it is more like $141 million. At the same time, ZkSync takes eighth place among Ethereum layer-2 solutions by the total value locked at the moment.

Matter Labs Plans Decentralization Upgrade

Matter Labs, the team behind ZkSync, is in the process of decentralization at the moment, though specifics remain unformalized. The company has shared hints about launching a token and an airdrop by the end of June. A future upgrade is still expected to help decentralize the protocol at a faster pace. This week, zkSync announced that decentralization is finalized, and v24, the final protocol update, is due out shortly. This modification is a trend in decentralizing network administration to the community. It also hints at the upcoming token launch.

Since contributing to supporting EIP-4844 in March, ZkSync has aimed for complete decentralization. The core protocol update for v24 is going to be the final one necessary to transfer the network sovereignty to the community. This change is anticipated to reinforce the protocol and encourage more users and developers to become part of the ecosystem.

ZkSync has garnered considerable funding from leading venture capitalists such as a16z, Dragonfly Capital, and Blockchain Capital. It has secured $258 million in funding and has also announced a $200 million ecosystem development fund. This support has been instrumental in ZkSync’s development and evolution. The ecosystem development fund at ZkSync aims to encourage innovation by supporting new projects and developers.

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