Developers of the Altcoin Praised by Vitalik Buterin Announce a Major Update
ZKsync founder Alex Gluchowski has introduced a new tokenomics model aiming to transform the ZK token into an asset with real economic utility. The proposed model includes revenue streams from cross-chain fees and enterprise license revenues, which will be allocated for buybacks, staking, burning tokens, and ecosystem funding. ZKsync Era has generated $30.03 million in total revenue but only $640,000 over the last year. The token will gain value from two sources: on-chain interoperability fees and off-chain corporate license revenues. All revenue will be governed centrally to ensure economic sustainability and align network usage with value creation.
Layer-2
Ethereum Layer-2
ZKsync's New Tokenomics Model Announcement
ZKsync (ZK) founder Alex Gluchowski has announced a new tokenomics model that aims to transform the ZK token from a mere governance tool into an asset that provides real economic utility. According to this proposal, cross-chain fees and enterprise license revenues will be added to the ZK token, ensuring that all value generated will be managed through buybacks, token burning, staking, and ecosystem funding.
Current Revenue Analysis
According to DeFiLlama data, ZKsync Era's total revenue currently stands at $30.03 million, whereas only $640,000 in revenue was generated over the past year. This highlights the need for a revamped tokenomics model, which seeks to better capitalize on the ecosystem's potential for generating sustainable value.
Purpose of the New Tokenomics Model
In his statement, Gluchowski said:
“ZK was launched as a pure governance token. However, with interoperability and the real-world adoption of Prividiums, this proposal aims to give the token tangible economic benefits. The model is quite simple: When the network is used, the ecosystem should benefit as well.”
This emphasizes the goal of aligning token usage with real-world economic benefits, ensuring that the ZKsync ecosystem participants directly benefit from its developments and activities.
Two Key Revenue Streams in the New Model
The proposed model will ensure value is reflected in the ZK token through two primary revenue streams:
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On-chain interoperability fees:
- Revenue generated from the movement of assets and messages between ZKsync and Prividium.
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Off-chain corporate license revenues:
- Revenue generated from licensing advanced modules to banks and financial institutions.
Planned Revenue Allocation
Gluchowski explained that all revenue generated will flow into a governance-controlled system, from which it will be distributed for:
- ZK token buybacks
- Staking rewards
- Token burning
- Ecosystem funding
This approach aims to make decentralization economically sustainable by ensuring a meaningful share of the generated economic benefits contributes to the ZKsync network.