ZKsync Co-Creator Proposes ZK Token Overhaul for Economic Utility and Value Capture

• Proposal focuses on economic utility: The ZK token would capture value from onchain fees and offchain licensing to fund ecosystem growth and security.

• Current ZK token effective in early development but needs evolution as ZKsync hosts interconnected zero-knowledge chains.

• Ecosystem benefits: Revenue directed to token buybacks, staking rewards, and public goods, with over 3 million active addresses on ZKsync as of late 2024 per Matter Labs data.

Discover ZKsync tokenomics proposal: Alex Gluchowski’s plan shifts governance token to economic utility, capturing value for sustainable growth. Read how it drives adoption and decentralization in Ethereum scaling. Explore now!

What is the Proposed Overhaul for ZKsync Tokenomics?

ZKsync tokenomics overhaul, proposed by co-creator Alex Gluchowski, aims to transform the ZK governance token from a basic voting mechanism into one with robust economic utility. This evolution addresses the network’s maturation into a hub for interconnected zero-knowledge chains. By integrating value capture mechanisms, the token would sustain long-term development and decentralization without relying on central funding.

How Does the ZKsync Governance Token Plan to Capture Network Value?

The proposed ZKsync governance token model ties its value directly to network activity and external revenue sources. Onchain, it would draw from protocol-native fees generated by core functions like interoperability, settlement, and messaging between zero-knowledge rollups. These fees, which have already seen significant growth with ZKsync processing over 500 million transactions since launch according to Matter Labs reports, would create a steady revenue stream.

Offchain, the model incorporates licensing agreements for enterprise use of ZKsync’s open-source stack. While the technology remains freely available for community development, large-scale adoptions—such as in treasury management or supply chain integrations—would involve paid licenses to return value to the ecosystem. This approach ensures that enterprise participants contribute proportionally when leveraging infrastructure funded by the community.

Gluchowski, co-founder and CEO of Matter Labs, emphasized in his forum post that this structure prevents value leakage. All collected revenue would enter a governance-controlled treasury, allocated via community votes to initiatives like ZK token market buybacks, staking incentives for validators and users, token burning to manage supply, and funding for public goods such as developer grants. Expert analysts at blockchain research firm Delphi Digital have noted similar models in projects like Optimism, where sequencer fees have bootstrapped over $100 million in ecosystem funding since 2022, underscoring the viability of this strategy for layer-2 solutions.

To illustrate, Gluchowski shared a conceptual diagram of the tokenomics flow, showing revenue inflows from fees and licenses funneling into the treasury and looping back to enhance network security and adoption.

Proposed tokenomics. Source: Alex Gluchowski

This self-reinforcing loop, as described, would increase resources with higher adoption, benefiting all participants. Matter Labs’ head of business development, Omar Azhar, echoed this in a June forum post titled “ZKnomics Roadmap Vision,” stating that the system aligns usage with revenue, directing it toward incentivizing participants and managing token supply for protocol health.

The proposal builds on ZKsync’s established success. Launched as an Ethereum layer-2 scaling solution in 2020, ZKsync has grown to support diverse applications, from decentralized exchanges to NFT marketplaces, with total value locked exceeding $500 million as per DeFiLlama metrics. However, Gluchowski argues that without economic sustainability, decentralization could falter, especially as the network scales to handle enterprise-level demands.

Community feedback is central to the process. Gluchowski shared the proposal on social media platforms to gather input, indicating that detailed implementation would follow once broad support emerges. This iterative approach aligns with governance best practices observed in other protocols, where community alignment has led to successful upgrades, such as Arbitrum’s fee distribution model that returned over 40% of revenues to the DAO in 2024.

Frequently Asked Questions

What Changes Are Proposed in the ZKsync Tokenomics Overhaul for Economic Sustainability?

The ZKsync tokenomics overhaul proposes shifting the ZK governance token to capture value through onchain fees from settlement and interoperability, plus offchain licensing for enterprise software use. This revenue would fund buybacks, staking rewards, and ecosystem initiatives, ensuring economic sustainability and reducing reliance on external sponsors, as outlined in Alex Gluchowski’s forum post.

Why Is ZKsync Updating Its Governance Token Now?

ZKsync is updating its governance token because the network has evolved beyond its early stages into a mature ecosystem of interconnected zero-knowledge chains. The current token focused on decision-making, but now it needs economic utility to capture value from usage and drive adoption, making decentralization sustainable for the long term.

Key Takeaways

• Economic Utility Shift: ZKsync’s tokenomics proposal transforms the ZK token from pure governance to a value-capturing asset via fees and licensing, aligning incentives for growth.
• Revenue Allocation: Inflows direct to treasury for buybacks, staking, burning, and public goods, fostering a self-sustaining loop as supported by Matter Labs’ vision.
• Community-Driven Timeline: Implementation awaits broad support; users should engage in forums to shape the future of ZKsync’s decentralized economy.

Conclusion

The ZKsync tokenomics proposal by Alex Gluchowski marks a pivotal step toward embedding economic utility in the ZKsync governance token, ensuring it captures network value amid rapid ecosystem expansion. By channeling revenues into sustainable mechanisms, ZKsync positions itself as a leader in Ethereum scaling. As the community reviews this direction, stakeholders can anticipate enhanced security and innovation, driving broader adoption in the coming years—stay informed on these developments for opportunities in decentralized technologies.