Zksync Creator Floats Governance Token Revamp To Add ‘economic...
ZKsync co-creator Alex Gluchowski has proposed to shift the project’s governance token to one with “economic utility” and value capture.
The co-creator of the Ethereum-scaling solution ZKsync has proposed a major overhaul of its governance token, arguing it should prioritize “economic utility.”
In a post on Tuesday to the ZKsync forum, Alex Gluchowski argued that while its ZKsync (ZK) governance token was effective in the project’s early stages as the “architecture and adoption path were still forming,” the network has since rapidly evolved.
He said it now hosts an ecosystem of interconnected zero-knowledge chains, and it is important that ZKsync’s token captures network value and drives further ecosystem adoption.
Gluchowski, who is also the co-founder and CEO of Matter Labs, the firm behind ZKsync, emphasized that funds must flow back into the “network’s economy,” as this will enable continual infrastructure upgrade, security enhancements, public goods funding and “long-term independence.”
“The design goal is to establish a self-reinforcing economic loop where adoption increases network resources, and those resources in turn enhance the network for all participants,” he wrote.
Gluchowski outlined that the revamped ZK token would derive value onchain from avenues like protocol-native fees, generated from “interoperability and other core settlement and messaging functions,” and offchain via licensing agreements for “enterprise software components.”
In terms of licensing deals, ZKsync’s stack is free to use, as it is open-source. However, Gluchowski argued that when large enterprises adopt “community-built infrastructure” for complex uses such as treasury integrations, there should be agreements in place to provide value back to the ecosystem.
“When such capabilities are funded by the ecosystem, it is reasonable that their use by enterprise participants returns value to the ecosystem,” he wrote.
From there, all of this extracted value would then flow into a “governance-controlled system” that would direct it to ZK market buybacks, staking rewards, token burning and ecosystem funding.
Source: CoinTelegraph
