ZKsync<\/a>, the Ethereum Layer 2 leveraging zero-knowledge proofs, has revealed an updated tokenomics proposal for its native token ZK, which would shift it from a pure governance token to a utility token.<\/p>\n According to a press release shared with The Defiant, the proposal will see value accrue to the ZK token via its on-chain interoperability fees, and offchain enterprise licensing income. These revenue sources will fund staking rewards, ecosystem funding, and a buyback and burn mechanism.<\/p>\n The move addresses the lack of tangible value in governance tokens, and is an extension of the ZKnomics roadmap<\/a> first published in June. This original outline highlighted the need for usage-driven revenue, programmatic distribution, and a gradual implementation of the ZKnomics shift.<\/p>\n Today’s proposal marks \u201cpart one\u201d of the new tokenomics design, and is primarily focused on a value flywheel for the ZK token.<\/p>\n The market has responded well to the announcement, and ZK jumped over 14%<\/a> on the day. ZK is now up 62% on the week, indicating that forward knowledge of the proposal may have been frontrun, considering the altcoin market in general has been exceptionally weak lately.<\/p>\n The move may bring some much needed life to the ZK token<\/a>, which is down 83%<\/a> from its June 2024 all-time high. ZK currently changes hands at roughly 5 cents per token, or a $380 million market capitalization.<\/p>\n Alex Gluchowski, the CEO and co-founder of Matter Labs, which developed the protocol, commented on the proposal, saying:<\/p>\n \u201cZKsync has been building the rails for Incorruptible Finance for years; now, we move to the next phase building the real economy around it. This is the moment the $ZK token grows from governance into real utility. As the network scales in production, value flowing through ZKsync should flow back to the ecosystem.\u201d<\/p><\/blockquote>\n<\/figure>\n<\/div>\n","protected":false},"excerpt":{"rendered":" ZKsync, the Ethereum Layer 2 leveraging zero-knowledge proofs, has revealed an updated tokenomics proposal for its native token ZK, which would shift it from a pure governance token to a utility token. According to a press release shared with The Defiant, the proposal will see value accrue to the ZK token via its on-chain interoperability […]<\/p>\n","protected":false},"author":2,"featured_media":410215,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[274,273,272,244,266,271,268,270,269,267],"class_list":["post-410214","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-de-fi","tag-crypto-finance","tag-decentralized-finance","tag-liquidity","tag-metamask","tag-pancake","tag-slippage","tag-sushiswap","tag-tronlink","tag-trust-wallet","tag-uniswap"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/410214","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=410214"}],"version-history":[{"count":1,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/410214\/revisions"}],"predecessor-version":[{"id":410217,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/410214\/revisions\/410217"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/410215"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=410214"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=410214"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=410214"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"the-defiant\"](\"https:\/\/thedefiant.io\/_next\/image?url=https%3A%2F%2Fcdn.thedefiant.io%2Fpasted-1762271812579-png-53fd2faa-dd9d-4a2a-babc-8b14a9da9fdf.png&w=3840&q=100\"\/)