zkSync, an Ethereum Layer-2 network, is reaching a major milestone on its path to decentralization with the upcoming release of its final protocol upgrade, v24. This update will transfer network governance to the community, marking the end of zkSync’s decentralization process and potentially leading to the launch of a governance token.
The achievement of full decentralization has been zkSync’s goal since incorporating EIP-4844 in March. The v24 release is the last essential upgrade needed to complete this transition, and the company expects to finish all remaining steps by the end of June. This meticulous process considers both technological and legal frameworks, as zkSync prioritizes long-term development over immediate gains. The aim is to establish itself as a key player in the blockchain industry, driving the emergence of a verifiable internet era that can serve billions of users.
Speculation has arisen about a possible token launch following the announcement of the v24 upgrade. zkSync has hinted at an upcoming governance token airdrop scheduled for the end of June, which has been eagerly anticipated since last year when investors transferred over $8 million worth of tokens to zkSync in hopes of qualifying.
Currently, the total value locked (TVL) in zkSync stands at $141 million, according to DefiLlama. In a recent post on the X platform, zkSync confirmed that the v24 release will be the final protocol upgrade before transferring network governance to the community, with the remaining components expected to be completed by the end of June.
zkSync specializes in zero-knowledge (ZK) rollup technology, aiming to scale Ethereum by enabling cheaper transactions through off-chain computation and data storage. This Layer-2 network utilizes cutting-edge zero-knowledge cryptography.
The issuance of a governance token is seen as the logical next step following a series of airdrops from projects like EigenLayer, Renzo, Ethena, and Wormhole, which have chosen to reward early adopters instead of conducting traditional token sales. This strategy fosters loyalty and community involvement.
Matter Labs, the company behind zkSync, has secured $458 million in funding from investors, including Blockchain Capital and Dragonfly Capital. This financial support aims to strengthen zkSync’s mission of developing scalable and efficient blockchain solutions. In April, Circle, a major stablecoin issuer, extended support for its USD Coin (USDC) to Ethereum’s zkSync. This integration allows USDC to be used on a scalable platform, expanding its application across various decentralized finance (DeFi) protocols. USDC on zkSync can be redeemed for U.S. dollars through Circle on a one-to-one basis and can be transferred across chains via cross-chain bridges.
zkSync has recently surpassed Ethereum in monthly transaction volume, processing over 35 million transactions in the last 30 days, compared to Ethereum’s 34.2 million and Arbitrum One’s 31.4 million. This increase in activity is driven by the growing popularity of zkSync’s inscriptions, which saw a record 5.3 million transactions in a single day after the launch of its sync inscription. The rise in transaction volume has occasionally led to network congestion, highlighting the demand for zkSync’s services and the challenges of scaling.
Furthermore, the total value locked (TVL) in zkSync has exceeded $500 million, marking a 12% increase in just one week. This significant growth in TVL demonstrates the network’s increasing popularity and the confidence investors have in zkSync’s scaling solutions. With its ability to handle high transaction volumes and its expanding ecosystem of decentralized applications, zkSync is positioned as a leading Ethereum Layer-2 solution.
