The creator behind the Ethereum layer-2 network ZKsync has unveiled a proposal to transform its $ZK token from a governance instrument to a token with real economic utility.
A new proposal, “From Governance to Utility: ZK Token Proposal, Part I,” published Tuesday by Alex Gluchowski in the ZKsync community forum, outlines how network usage and enterprise licensing can directly feed value back into the token’s economy.
The move could change how ZKsync’s ecosystem will generate and distribute value. Instead of $ZK acting solely as a governance token, the proposal would have network activity, such as interoperability and enterprise use, directly impact its economy.
The proposal argues that the network’s growing ecosystem, which now includes modular chains, private “Prividium” networks and a cross-chain interoperability layer known as the Elastic chain, needs a token model that evolves with it.
“The ZK token began as a tool for governance.” says the post. “Through governance, it can now become the heartbeat of an incorruptible economy.”
According to the plan, ZKsync will introduce two main revenue streams. The first would come from on-chain interoperability fees charged when users move assets or messages between rollups in the ecosystem. The second would be off-chain licensing revenue from enterprise tools, such as compliance or reporting modules tailored to institutions that build on the protocol.
Both sources of revenue will flow into a governance-controlled mechanism that buys back $ZK tokens from the market.
The purchased tokens will then be allocated to three uses: burning to reduce supply, staking rewards for decentralized operators, and ecosystem funding to support developers and public goods. The proposal emphasizes that all parameters – from fee levels to distribution ratios – would be set through community governance rather than by the core team.
By linking usage directly to financial results, zkSync hopes to create a self-sustaining loop where activity generates revenue, revenue supports the token, and the token in turn secures and funds the network.
According to CoinMarketCap, the ZK token has fallen 54% over the past year.
Still, big questions remain. The proposal does not specify fee sizes, buyback plans or how issues will be managed, details are expected in later installments.
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