ZKsync to Airdrop 3.6 Billion Tokens to Early Users
Estimated Reading Time: 4 minutes
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong. Take 2 minutes to learn more
The ZKsync Association is preparing to distribute 3.675 billion ZK tokens to its community members starting next week. Announced on Tuesday, this airdrop represents 17.5% of the total 21 billion ZK token supply and will continue until January 3, 2025. Contributors can begin claiming their tokens on June 24.
Once claimed, ZK tokens will be integral to the governance of the ZKsync protocol. Token holders will have the power to participate in decision-making processes by voting on various protocol upgrades and changes. This decentralized governance model ensures that the community has a say in the future development and direction of the protocol. Additionally, ZK tokens will be used to pay network fees and facilitate transactions and other operations within the ZKsync ecosystem. This dual utility of governance and fee payment underscores the token’s importance in maintaining and enhancing the functionality and sustainability of the network.
ZKsync is the third-largest zero-knowledge proof-based Ethereum Layer 2 scaling solution, a technology designed to enhance the performance and scalability of the Ethereum blockchain. By utilizing advanced cryptographic techniques known as zero-knowledge proofs, ZKsync ensures secure and efficient transaction processing without compromising on decentralization. According to L2Beat, a platform that tracks Ethereum Layer 2 networks, ZKsync currently secures over $750 million in assets on its network. This substantial amount of assets indicates a significant level of trust and adoption among users and developers in the Ethereum ecosystem.
Token Allocation
A blog post by ZKsync outlines that 49.1% of the total token supply will be dedicated to various ecosystem initiatives. Additionally, 17.2% of the tokens are set aside for investors, while 16.1% will be allocated to Matter Labs, the developer of ZKsync. These team tokens will be locked for one year and will gradually unlock from June 2025 to June 2028.
“Awarding more tokens in the airdrop than to the Matter Labs team and investors is more than a symbolic decision for the community,” the press release stated. “When the ZKsync governance system launches in the coming weeks, the community will have the largest supply of liquid tokens to direct protocol governance upgrades.”
Airdrop Execution
A total of 695,232 wallets have been identified as eligible for the airdrop based on their recorded activities on both ZKsync Era and ZKsync Lite platforms up until March 24, 2024. This eligibility reflects active engagement and participation within the ZKsync ecosystem. The airdrop distribution will be divided, with a significant majority of 89% allocated to users, rewarding those who have actively used the network. The remaining 11% will be designated for contributors, recognizing their efforts and contributions to the development and growth of the ZKsync protocol. This allocation strategy aims to balance incentivizing current users while also acknowledging the essential role of contributors in the ecosystem’s success.
ZKsync has set a cap of 100,000 tokens per address. The token distribution is determined by a points system. Points were awarded for activities such as interacting with smart contracts, providing liquidity to DeFi protocols, and trading ERC-20 tokens.
Activities on ZKsync Lite, like donating to Gitcoin rounds, also earned points. Wallets allocated fewer than 450 ZK tokens will have their allocations recycled back into the pool to ensure a minimum of 917 ZK per wallet.
In March, ZKsync’s total value locked (TVL) peaked at $930 million but has since decreased to $750 million, according to data from L2Beat.
