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Everything You Need to Know About ZKSync's ZK Token

by BSC News

June 11, 2024

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ZK token holders could introduce and vote on protocol upgrades and pay network fees using ZKsync's native account abstraction.

The long-awaited launch of ZKSync's ZK token and its community airdrop is approaching, with the team recently unveiling details about its distribution. 

ZK tokens would allow token holders to introduce and vote on protocol upgrades and pay for network fees using ZKsync's native account abstraction. According to the team, the community can introduce staking and other features to ZK through governance-driven protocol upgrades.

 

With the launch of more ZK chains, the token can become an important tool for coordinating technical innovation. The zkSync team stated that, besides ZKsync Era, Lens Network, Cronos zkEVM, GRVT, and a number of others will debut in the near future.

Token Supply Breakdown

The total supply of ZK tokens is 21 billion, hosted on the zkSync Era network and non-transferrable to the Ethereum mainnet. Here's the breakdown of the ZK token allocation:

  • Team: 16.1%

  • Investors: 17.2%

  • Airdrop: 17.5%

  • Ecosystem Initiatives: 19.9%

  • Token Assembly: 29.3%

Source: zkSync

Ecosystem and Experimental Communities

A further 49.1% of the token supply will be distributed through ecosystem initiatives managed by the ZKSync Foundation and governed by the ZK Nation. Just under half a percent is allocated to experimental communities, including:

  • Degen and Bonsai Airdrops: For activity on decentralized social networks Farcaster and Lens.

  • Crypto the Game Players: Recently acquired by Uniswap Labs.

  • NFT Projects: Including Pudgy Penguins and Milady Maker.

Investor and Team Token Locks

Worth noting, 33% of the tokens allocated to investors and the Matter Labs team are locked for the first year and then unlocked over three years from June 2025 to June 2028. This gradual release aims to ensure long-term commitment and stability. Only a small portion (3.66%) will be unlocked after the first year.

ZK Airdrop Allocation Details

The team will distribute 17.5% of the total ZK token supply, equating to 3.675 billion tokens as airdrops to 695,232 eligible wallets, These users are reportedly the early adopters of its Ethereum Layer 2 network. 

Source: zkSync

The airdrop is divided into two main groups:

 

1. Users (89%): Those who have actively transacted on ZKSync and met certain activity thresholds.

 

2. Contributors (11%): Individuals, developers, researchers, communities, and companies that have contributed to the ZKSync ecosystem through various means. Approximately half of this allocation - 5.8% - will go to protocols building on ZKsync, which can spend their tokens in any way they choose. Another 2.4% will go to other developers, while 2.8% will go to Onchain communities.

 

Eligible users can claim their tokens from next week until January 3, 2025.

Disclaimer

Disclaimer: The views expressed in this article do not necessarily represent the views of BSCNews. The information provided in this article is for educational and informational purposes only and should not be construed as investment advice. BSCNews assumes no responsibility for any investment decisions made based on the information provided in this article

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