Countdown to ZKsync’s ZK Airdrop: What to Expect Next Week

As outlined in the plan released on Tuesday, 17.5% of ZK’s total supply of 21 billion tokens will be airdropped to users beginning “next week.

Matter Labs, the primary development firm behind the ZKsync Era layer-2 network, has officially announced the criteria for distributing its highly anticipated ZK token airdrop. As outlined in the plan released on Tuesday, 17.5% of the total 21 billion ZK tokens will be airdropped to users starting “next week.” Promoting itself as a fast and cost-effective solution for Ethereum transactions, ZKsync Era, like other layer-2 networks, aims to improve transaction efficiency.

Matter Labs claims that this ZK airdrop will be the “largest distribution of tokens to users among major L2s,” with nearly 3.7 billion tokens set for distribution.

Pre-market prices from Aevo, a crypto perpetuals exchange, value each ZK token at $0.66. Considering the total supply of 21 billion tokens, the airdrop’s fully diluted value (FDV) surpasses $2.5 billion. This valuation exceeds nearly triple the current total value locked (TVL) of ZKsync Era, standing at $815 million. Aevo’s pricing indicates substantial market interest and potential for growth in the ZK token.

The FDV of the airdrop underscores its significant impact on the market and potential value for recipients. The high FDV relative to TVL suggests a strong market sentiment and future growth prospects for the ZKsync Era network.

This valuation could attract more users and investors to participate in the ZKsync ecosystem. The perceived value of the airdrop tokens may encourage increased adoption and usage of the ZKsync network. Overall, Aevo’s pre-market pricing signals optimism and potential for the ZKsync Era and its associated token.

Aevo’s pricing indicates substantial market interest and potential for growth in the ZK token. The FDV of the airdrop underscores its significant impact on the market and potential value for recipients. The high FDV relative to TVL suggests a strong market sentiment and future growth prospects for the ZKsync Era network.

As the airdrop news unfolds, Matter Labs encounters scrutiny for its attempt to trademark “ZK,” which signifies “zero-knowledge” cryptography, pivotal to ZKsync and various blockchain ventures. Backlash prompts Matter Labs to withdraw its trademark application, originally filed to protect users from confusion with similar projects and tokens.

Matter Labs Takes Aim at Whales with Token Cap in Airdrop Strategy

Matter Labs has specified that the airdrop will cap token allocations to individual addresses at 100,000 tokens, as stated in a press release reviewed by CoinDesk. This measure aims to ensure fairness by preventing disproportionately large allocations to a few individuals, known as “whales” in cryptocurrency jargon.

The decision underscores Matter Labs’ commitment to rewarding community members who contribute to ZKsync in diverse ways. By implementing this cap, the airdrop seeks to distribute tokens more equitably among participants. This approach aligns with efforts to foster inclusivity and broad participation within the ZKsync ecosystem. Such measures aim to create a level playing field and promote community engagement in the development and growth of ZKsync.

The team additionally disclosed that 16.1% of ZK tokens will be allocated to Matter Labs employees, while 17.2% will go to Matter Labs investors. These tokens will undergo a locking period of one year, followed by gradual unlocking over the subsequent three years.

The remaining token supply will be allocated to ZKsync’s newly established “Token Assembly” (29.3%) as outlined in its freshly introduced governance framework unveiled on Monday, with an additional portion allocated to various Ecosystem Initiatives (19.9%).

Matter Labs emphasized that allocating a larger portion of tokens to the community through the airdrop compared to the allocations for the Matter Labs team and investors holds significant practical implications beyond mere symbolism. In a statement provided to CoinDesk, Matter Labs highlighted that this decision reflects their commitment to empowering the community in the governance of ZKsync.

With the launch of the ZKsync governance system on the horizon, the community will possess the most substantial supply of liquid tokens available to influence protocol governance enhancements. This approach ensures that decision-making power and control over the future direction of ZKsync are distributed widely among community members, fostering decentralization and inclusivity in the governance process.

The recent airdrop, following in the footsteps of similar initiatives by projects like StarkNet and EigenLayer, has sparked discussions within the crypto community. These earlier airdrops, especially EigenLayer’s, drew criticism from users who felt they didn’t receive the expected token amounts or were excluded based on geographic restrictions.

Alex Gluchowski, Matter Labs’ CEO, explained in an interview with CoinDesk that considerable thought went into designing their airdrop strategy. Despite their efforts to create a fair distribution plan, Gluchowski acknowledged that it’s impossible to please everyone.

However, he emphasized that Matter Labs carefully considered the approaches taken by other projects to inform their decision-making process. Notably, the team’s primary focus was to heavily prioritize the community, reflecting one of the key pillars guiding their distribution plan. This emphasis underscores Matter Labs’ commitment to fostering a sense of community ownership and participation within the ZKsync ecosystem

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Countdown to ZKsync’s ZK Airdrop: What to Expect Next Week

Matter Labs Takes Aim at Whales with Token Cap in Airdrop Strategy

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