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zkSync Announces Final Protocol Upgrade Ahead of Token Launch – Crypto News

Published

1 year ago

May 18, 2024

Dripp

zkSync, an Ethereum Layer-2 network, has confirmed that its decentralization process is complete, with the final protocol upgrade, v24, set to be released.

This modification is a step towards the delegation of network administration to the people and it also points out at the upcoming token launch.

zkSync Final Protocol Upgrade and Decentralization

zkSync has been concentrating on the complete decentralization since it supported EIP-4844 in March. The forthcoming release of v24 will be the last in a row protocol upgrade that is required for the transfer of network governance to the community. zkSync announced that the other parts of decentralization are going to be ready by the end of June.

zkSync firmly stands by its commitment to decentralize.

Since rolling out support for EIP4844 in March, this has been the sole focus. The upcoming release of v24 is the final planned protocol upgrade needed before handing over network governance to the community. The remaining…

— zkSync (∎, ∆) (@zksync) May 17, 2024

Decentralization is a challenging and non-reversible process, which needs the complete attention to detail at the point of technology and legal frameworks. zkSync, as a result, is determined to be one of the major players in the industry by preferring long-term fundamental technology instead of short-term gains.

This pledge symbolizes the intention of zkSync to be a trigger for the new era of verifiable internet that will serve billions of users.

Impending Token Launch and Community Governance

The v24 upgrade announcement has triggered the speculation on a possible token launch. zkSync has given a hint to the community about an upcoming governance token airdrop by the end of June.

This expected airdrop has been greatly anticipated since last year when investors transferred over $8 million worth of tokens to zkSync in order to be eligible for it. As per DefiLlama, the total value locked (TVL) in zkSync is now at $141 million.

“The upcoming release of v24 is the last protocol upgrade that was expected before giving network governance to the community. The remaining missing pieces will be in place by the end of June,” zkSync wrote on the X platform.

Technical Enhancements and Industry Impact

zkSync which is the developer of zero-knowledge (ZK) rollup technology, was designed to scale Ethereum through cheaper transactions by using off-chain computation and data storage. The layer-2 network makes use of the zero-knowledge cryptography, which is among the most promising advancements in blockchain technology.

The issuance of a governance token is the next step after a series of airdrops from projects like EigenLayer, Renzo, Ethena and Wormhole which have chosen to reward early adopters rather than conducting traditional token sales. This method, as a result, is designed to create a sense of loyalty and involvement in the community.

Matter Labs which is the company behind zkSync, has managed to raise $458 million from investors like Blockchain Capital and Dragonfly Capital. This financial support, consequently, is to be used for the realization of zkSync’s goal which is to make scalable and efficient blockchain solutions.

zkSync Integration with USDC and Broader Ecosystem

In the month of April, Circle which is a major issuer of stablecoin extended the support for its USD Coin (USDC) to Ethereum’s zkSync. This integration, in turn, will make USDC usable on a scalable platform and hence its usage will be spread to many applications and DeFi protocols.

The USDC on zkSync still has its redeemability in a one-to-one basis for U. S. dollars through Circle and can be exchanged across the chains via cross-chain bridges.

Along with this, the zkSync ecosystem has been rapidly growing and now it has over 180 decentralized applications and 5. 7 million unique active wallet addresses in the preceding 30 days.

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