Example URL From our sponsor
ZKsync Proposal Aims to Tie $ZK Token to Network Revenue - news.adtechsolutions ZKsync Proposal Aims to Tie $ZK Token to Network Revenue - news.adtechsolutions

ZKsync Proposal Aims to Tie $ZK Token to Network Revenue



The creator behind the Ethereum network layer-2 ZKsync presented a proposal to transform their $ZK token from a governance tool into a token with real economic utility.

A new proposal, “From Governance to Utility: ZK Token Proposal, Part I,” published on Tuesday by Alex Gluchowski on the ZKsync community forum, outlines how network usage and enterprise licensing could directly bring value back into the token economy.

The move could change how ZKsync’s ecosystem generates and distributes value. Instead of $ZK functioning purely as a governance token, the proposal would make the activities of the network, such as interoperability and the use of the company, directly influence its economy.

The proposal argues that the network’s growing ecosystem, which now includes modular chains, private “Prividium” networks and a cross-chain interoperability layer known as the Elastic chain, needs a token model that evolves with it.

“The ZK token started as a tool for the government.” the post says. “Through governance, it can now become the heartbeat of an incorruptible economy.”

Under the plan, ZKsync will introduce two main revenue streams. The first comes from on-chain interoperability fees, charged when users move assets or messages between rollups in the ecosystem. The second would be the entry of off-chain licenses from company tools, such as compliance or reporting modules suitable for institutions that rely on the protocol.

Both sources of revenue will flow into a governance-controlled mechanism that buys $ZK tokens from the market.

Those purchased tokens will then be allocated towards three uses: burning to reduce supply, staking rewards for decentralized operators, and funding the ecosystem to support developers and public goods. The proposal emphasizes that all parameters – from fee levels to distribution ratios – will be set through community governance rather than by the core team.

By linking usage directly to economic outcomes, zkSync hopes to create a self-sustaining cycle in which activity generates revenue, revenue supports the token, and the token in turn secures and funds the network.

Second at CoinMarketCapthe ZK token is down 54% over the past year.

However, major questions remain. The proposal does not specify the dimensions of the fees, the recovery schedules or how the issues will be managed, the details expected in subsequent payments.

Read more: UBS is testing ZKSync’s Layer-2 technology, which shows a deeper TradFi interest in Crypto





Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

Example URL From our sponsor