ZKsync Creator Proposes Revamped Governance Token for Greater Economic Benefit

Ethereum scaling solution ZKsync co-founder Alex Gluchowski has launched a major governance overhaul token Introduced with an emphasis on "economic utility." In a recent forum post on Tuesday, Gluchowski explains that the ZKsync governance token was initially effective in the early stages of the project, when the architecture and adoption path were still being developed. However, the network has since undergone a rapid transformation.

ZKsync now hosts an ecosystem of interconnected zero-knowledge chains, and it's crucial that ZKsync's token captures network value and drives further adoption within the ecosystem. "The goal is to align usage and value, make decentralization economically sustainable, and ensure the network receives a substantial share of the economic benefits it creates," Gluchowski said.

Focus on Strengthening the Economic Cycle

As co-founder and Chief Executive Officer From Matter Labs, the company behind ZKsync, Gluchowski emphasizes that resources must flow back into the "economics of the network." This is essential for continuous infrastructure upgrades, security improvements, and the financing of public goods, contributing to the company's "long-term independence."

Gluchowski argues that the design goal is to create a self-reinforcing economic cycle, where adoption increases network resources, and these resources in turn improve the network for all participants.

Tokenomics Review

In this context, Gluchowski outlines that the revamped ZK token should derive value on-chain from sources such as protocol fees, generated by “interoperability and other core settlement and messaging features,” and off-chain through licensing agreements for “enterprise software components.”

While the ZKsync stack is free and open-source, Gluchowski argues that when large enterprises adopt “community-built infrastructure” for complex purposes, such as treasury integrations, there should be agreements that bring value back to the ecosystem.

"When such capabilities are funded by the ecosystem, it's reasonable that their use by corporate participants returns value to the ecosystem," he writes. All this extracted value should flow into a "governance-controlled system" that uses these funds for ZK market purchases, staking rewards, token burning, and ecosystem funding.

Gluchowski emphasizes that for decentralization to be lasting, it must be economically sustainable. The network needs a robust economic model that supports continuous development, security, and operations, carried out by many independent participants, rather than a central sponsor.

ZKsync has been considering a change to its governance token for several months. In June, Omar Azhar, head of business development at Matter Labs, shared a "ZKnomics Roadmap Vision" on the project's forum.

"ZKnomics is designed to align ZK with the long-term health and sustainability of the protocol. It proposes a system where network usage drives protocol revenue, and that revenue is programmatically focused on two core tasks: incentivizing protocol participants and managing token supply," Azhar said.

The exact timeline for this token transition is currently unclear. Gluchowski also shared his proposal on social media to encourage more community feedback, adding that more details will be provided "when there is broad support for this direction."

Frequently Asked Questions

How could ZKsync's governance token revision impact economic sustainability?
The review aims to create a self-reinforcing economic cycle that better aligns use and value. This will not only promote the long-term sustainability of the network but also ensure stronger financing of infrastructure and public goods.

What exactly does the change in tokenomics entail?
The new tokenomics aims to capture value from both on-chain and off-chain sources. By implementing licensing agreements with large corporations, value can flow back into the ecosystem, strengthening ZKsync's economic model.

When can we expect more details about the governance token adjustment?
While the timeline is currently unclear, a broadly supported proposal is being developed. Gluchowski indicated that further details will be shared once sufficient community support is received.