Overview
ZKsync, a prominent layer-2 network developed by Matter Labs, is set to distribute its long-anticipated ZK token airdrop “next week.” This announcement comes with significant excitement as 17.5% of ZK’s total 21 billion token supply will be distributed to users. The airdrop plan, released on Tuesday, indicates that this will be one of the largest token distributions among major layer-2 solutions.
Key Details of the Airdrop
Matter Labs has outlined the distribution criteria for the ZK token airdrop. According to the plan, nearly 3.7 billion ZK tokens will be airdropped to users, representing 17.5% of the total token supply. This move is aimed at enhancing the network’s user base and fostering greater community engagement.
Pre-Market Valuation: The pre-market prices from Aevo, a crypto perpetuals exchange, currently value the ZK token at $0.66. This valuation places the airdrop’s fully diluted value (FDV) at over $2.5 billion, which is almost triple ZKsync Era’s current total value locked (TVL) of $815 million.
Distribution Breakdown:
• 89% to ZKsync Users: This includes anyone who has transacted on the ZKsync network and met a certain activity threshold (specific details of the threshold were not provided).
• 11% to Contributors: This portion will be allocated to zkSync native projects (5.8%), on-chain communities (2.8%), and builders (2.4%).
Matter Labs has set a cap on the amount any single address can receive at 100,000 tokens. This measure aims to prevent “whales” (large traders) from dominating the distribution and ensures fair rewards for community members who actively contribute to the network.
Additional Token Allocations
The airdrop distribution is part of a broader token allocation plan:
• 16.1% to Matter Labs Employees: These tokens will be locked for one year, followed by a gradual unlocking over three additional years.
• 17.2% to Matter Labs Investors: Similar to employee tokens, these will also be locked and then released over a four-year period.
• 29.3% to the ZKsync Token Assembly: This new governance body will oversee protocol governance and upgrades.
• 19.9% to Ecosystem Initiatives: These funds will support various projects and initiatives within the ZKsync ecosystem.
Community Impact and Governance
Awarding more tokens to the community through the airdrop than to the Matter Labs team and investors is a strategic decision to empower the user base. As the ZKsync governance system launches in the coming weeks, community members will hold the largest supply of liquid tokens, enabling them to have a significant say in protocol governance and future upgrades.
Airdrop Politics and Compliance
The ZKsync airdrop follows other significant airdrops in the crypto space, such as those from StarkNet and EigenLayer, which faced backlash due to restrictive distribution criteria. Alex Gluchowski, CEO of Matter Labs, emphasized that the design of the ZK airdrop prioritizes the community while maintaining compliance with international regulations.
Gluchowski explained that some jurisdictions would be excluded from the airdrop due to legal restrictions. Although specific countries were not mentioned, the exclusion aims to adhere to regulatory requirements and ensure the airdrop’s legality.
Trademark Controversy
The airdrop news comes amid a controversy involving Matter Labs’ attempt to trademark the term “ZK,” which stands for “zero-knowledge” cryptography. This move faced criticism from competitors and the broader crypto community, as “ZK” technology is widely used across the Ethereum ecosystem.
In response to the backlash, Matter Labs decided to withdraw its trademark application. Gluchowski defended the initial decision, citing the need to protect users from similarly named projects, but ultimately, the team chose to respect community sentiment and avoid any perception of monopolizing a common term.
Conclusion
The upcoming ZKsync ZK token airdrop marks a significant milestone for the layer-2 network. With a detailed and community-focused distribution plan, the airdrop is set to enhance user engagement and participation in ZKsync’s governance. As the network continues to evolve, the fair and strategic allocation of tokens will play a crucial role in shaping its future.
