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ZKsync\u2019s new governance proposal could fundamentally shift how the protocol generates revenue for its holders. <\/p>\n
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ZKsync has continued last week\u2019s rally, with an upgrade that aims to prove its long-term utility and tokenomics. On Tuesday, Alex Gluchowski, CEO and co-founder of Matter Labs, announced a major ZKsync that would bring rewards to its holders. <\/p>\n
The upgrade proposed by the creator of the ZKsync network would turn the purely governance token into one that generates utility. The network would collect both off-chain and on-chain fees and use the proceeds to buy ZK tokens.<\/p>\n
A part of these tokens will be burned to increase their scarcity over time. The rest will go toward staking rewards and to a treasury to fund ecosystem development. <\/p>\n
\n\u201cThe goal is to align usage with value, make decentralization economically sustainable, and ensure the network captures a meaningful share of the economic benefits it creates,\u201d Gluchowski said. <\/p>\n<\/blockquote>\n
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ZKsync rallies after Vitalik\u2019s endorsement<\/h2>\n
Following the news of the upgrade, Zksync rose 15% in a single day, adding up to a 65% weekly rally. There were several catalysts for its rally, the main one being the endorsement of the Ethereum Layer-2 chain by Vitalik Buterin. <\/p>\n
On November 1, Ethereum\u2019s co-founder suggested that ZKsync\u2019s contributions to the Ethereum ecosystem are important, if often undervalued. His remarks were about the network\u2019s Atlas upgrade, which promised significant improvements in throughput and finality. Following the announcement, the token surged up 70%. <\/p>\n
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