ZKsync creator floats governance token revamp to add ‘economic utility’

The co-creator of the Ethereum-scaling solution ZKsync has projected a large overhaul of its governance token, arguing it should prioritize “economic utility.”

In a post connected Tuesday to the ZKsync forum, Alex Gluchowski argued that portion its ZKsync (ZK) governance token was effectual successful the project’s aboriginal stages arsenic the “architecture and adoption way were inactive forming,” the web has since rapidly evolved. 

He said it present hosts an ecosystem of interconnected zero-knowledge chains and it is important that ZKsync’s token captures web worth and drives further ecosystem adoption. 

“The extremity is to align usage with value, marque decentralization economically sustainable, and guarantee the web captures a meaningful stock of the economical benefits it creates.”

Gluchowski, who is besides the co-founder and CEO of Matter Labs, the steadfast down ZKsync, emphasized that funds indispensable travel backmost into the “network’s economy,” arsenic this volition alteration continual infrastructure upgrade, information enhancements, nationalist goods backing and “long-term independence.”

“The plan extremity is to found a self-reinforcing economical loop wherever adoption increases web resources, and those resources successful crook heighten the web for each participants,” helium wrote.

New tokenomics tied to revenue

Gluchowski outlined that the revamped ZK token would deduce worth onchain from avenues similar protocol-native fees, generated from “interoperability and different halfway colony and messaging functions,” and offchain via licensing agreements for “enterprise bundle components.”

Related: Crypto investors fly visibility for anonymity arsenic privateness coins surge 80%

In presumption of the licensing deals, ZKsync’s stack is escaped to usage arsenic it is open-source. However,  Gluchowski argued that erstwhile ample enterprises follow “community-built infrastructure” for analyzable uses specified arsenic treasury integrations, determination should beryllium agreements successful spot to supply worth backmost to the ecosystem.   

“When specified capabilities are funded by the ecosystem, it is tenable that their usage by endeavor participants returns worth to the ecosystem,” helium wrote. 

Proposed tokenomics. Source: Alex Gluchowski

From there, each of this extracted worth would past travel into a “governance-controlled system” that would nonstop it to ZK marketplace buybacks, staking rewards, token burning and ecosystem funding.  

“For decentralization to persist, it indispensable beryllium economically sustainable. The web needs a durable economical exemplary that supports ongoing development, security, and cognition by galore autarkic participants, not by a cardinal sponsor.”

ZKsync has been eyeing a change-up of its governance token for months now. Back successful June, Matter Labs' caput of concern improvement Omar Azhar posted a “ZKnomics Roadmap Vision” connected the project’s forum. 

“ZKnomics is designed to align ZK with the semipermanent wellness and sustainability of the protocol. It proposes a strategy wherever web usage drives protocol revenue, and that gross is programmatically directed toward 2 halfway functions: incentivizing protocol participants and managing token supply,” Azhar wrote. 

The projected timeline of this token displacement is unclear. Gluchowski besides posted this connection to X to promote much feedback and reappraisal from the community, adding that much details volition beryllium provided “once determination is wide enactment for this direction.” 

Magazine: Back to Ethereum: How Synthetix, Ronin and Celo saw the light