ZkSync, a prominent Ethereum Layer-2 network utilizing zero-knowledge (ZK) rollups, has hinted at a significant milestone with a potential governance token airdrop by the end of June. This move is part of its broader strategy to hand over network governance to the community.
Final Protocol Upgrade and Governance Hand-Off
In a post on X, zkSync announced that the upcoming v24 upgrade will be the final planned protocol enhancement before transitioning governance to the community. The layer-2 blockchain currently boasts $141 million in total value locked (TVL), reflecting growing user engagement and confidence.
“The upcoming release of v24 is the final planned protocol upgrade needed before handing over network governance to the community. The remaining missing pieces are expected to be in place by the end of June,” zkSync wrote.
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
Rising Total Value Locked
Since early murmurs of an airdrop emerged in March of last year, investors have been actively bridging tokens to zkSync. This anticipation has contributed to the TVL rising to $141 million, according to DefiLlama. Investors bridged over $8 million worth of tokens initially to be eligible for the airdrop, showcasing the community’s enthusiasm and trust in zkSync’s potential.
ZK Rollups: A Game-Changer for Ethereum Scaling
ZkSync is designed to scale Ethereum by providing cheaper transactions through off-chain computation and data storage. As a ZK rollup, it relies on zero-knowledge cryptography, a cutting-edge technology that promises to enhance blockchain efficiency and security. The Ethereum Dencun upgrade in March significantly reduced transaction fees, allowing layer-2 networks like zkSync to compress transactions before batching them to the Ethereum mainnet.
Increased Interest in Governance Tokens
The planned issuance of a governance token follows a trend where projects like EigenLayer, Renzo, Ethena, and Wormhole reward early adopters through airdrops rather than traditional token sales. This strategy has proven effective in fostering strong community ties and incentivizing early participation.
Substantial Funding and Development
Matter Labs, the developers behind zkSync, have secured a total of $458 million across several funding rounds, with notable contributions from Blockchain Capital and Dragonfly Capital. This robust financial backing underscores the industry’s confidence in zkSync’s technology and its potential to revolutionize Ethereum scaling.
The anticipated airdrop and the v24 protocol upgrade mark significant milestones for zkSync as it prepares to hand over governance to its community. With substantial TVL and increasing interest from investors, zkSync is poised to further solidify its position as a leading Ethereum Layer-2 solution. As the end of June approaches, the crypto community eagerly awaits the rollout of the governance token and the broader implications for zkSync’s ecosystem.
