Last updated on November 6th, 2025 at 11:32 am
Quick Breakdown:
- ZKsync’s co-creator has proposed revamping the network’s governance token to enhance its economic utility and ensure it captures network value.
- The new tokenomics focus on generating on-chain and off-chain revenue, including protocol fees and enterprise licensing.
- Funds generated will be reinvested into network development, security, and ecosystem incentives, aiming for long-term sustainability and independence.
Governance token overhaul to drive network value
ZKsync co-creator Alex Gluchowski has revealed plans to transform the project’s governance token into one with real “economic utility” and value capture. Initially effective during the early stages of network adoption, the existing ZK token now requires an upgrade to match the evolving ecosystem, which features interconnected zero-knowledge chains. Gluchowski emphasized aligning token usage with value to make decentralization economically sustainable, ensuring the network captures a meaningful share of the economic benefits it generates. This model is envisioned as a self-reinforcing economic loop, where increased adoption fuels enhanced network resources, benefiting all participants and supporting ongoing upgrades, security, and funding for public goods.
New Tokenomics model linked to revenue streams
The revamped ZK token will derive value from multiple sources, both on-chain and off-chain. On-chain, value will come from protocol-native fees generated by interoperability functions, settlement, and messaging activities. Off-chain, licensing agreements for enterprise software components will create revenue, particularly when large organizations use ZKsync’s open-source stack for complex enterprise needs like treasury integrations.
The ecosystem aims to reclaim value from such uses by enterprise participants. All revenue channels will feed into a governance-controlled system that allocates resources for ZK token market buybacks, staking rewards, token burning, and ecosystem funding. This approach focuses on creating a durable economic model that sustains decentralization through development and security efforts managed by diverse independent actors rather than a central sponsor. The timeline for this shift remains to be confirmed, with Gluchowski seeking community feedback before finalizing details.
This proposal follows earlier initiatives like the “ZKnomics Roadmap Vision” outlined by Matter Labs, which emphasized aligning network usage with protocol revenue to incentivize participation and regulate token supply.
Notably, ZKSync recently recovered over $5 million in stolen tokens following a security breach in which an attacker exploited a vulnerability in admin key contracts used for airdrops. User and core protocol funds remained safe. The Security Council offered the hacker a 10% bounty for the return of 90% of the assets, which was accepted. Matter Labs, the sole sequencer of the ZKSync Era, has enabled temporary transaction filtering to aid in recovery while governance decides on the disposition of the tokens.
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