zkSync Reveals Last Protocol Upgrade Ahead of Token Launch
zkSync, a Layer-2 network built on Ethereum, has reached a major milestone in its journey towards decentralization with the upcoming release of its final protocol upgrade, v24. This update will transfer network governance to the community, marking the completion of zkSync’s decentralization process and potentially paving the way for the launch of a governance token.
To achieve full decentralization, zkSync has been diligently working on incorporating EIP-4844 since March. The v24 release, expected to be completed by the end of June, is the last essential upgrade needed for this transition. This process requires careful consideration of both technological and legal frameworks, as zkSync prioritizes long-term development over short-term gains. The goal is to establish itself as a key player in the blockchain industry, driving the adoption of a verifiable internet era that can serve billions of users.
The announcement of the v24 upgrade has sparked speculation about a potential token launch. zkSync has hinted at an upcoming governance token airdrop scheduled for the end of June. This airdrop has been highly anticipated since last year when investors transferred over $8 million worth of tokens to zkSync in hopes of qualifying.
Currently, zkSync has a total value locked (TVL) of $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, which aims to scale Ethereum by enabling cheaper transactions through off-chain computation and data storage. This Layer-2 network utilizes cutting-edge zero-knowledge cryptography, offering advancements in blockchain technology.
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 approach is designed to foster loyalty and community involvement.
Matter Labs, the company behind zkSync, has raised $458 million from investors including Blockchain Capital and Dragonfly Capital. This financial support aims to strengthen zkSync’s mission to develop 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 still be redeemed for U.S. dollars on a one-to-one basis through Circle 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 surge in activity is largely driven by the increasing 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 TVL in zkSync has exceeded $500 million, marking a 12% increase in just one week. This significant growth underscores the network’s rising 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.
