ZKsync Shifts ZK Token from Governance to Economic Utility
ZKsync, an Ethereum Layer-2 scaling network, is transforming its ZK token’s role. Originally used only for governance, the token will now have active economic functions. This change aims to better align token usage with network value.
The ZK token launched in mid-2024 as a governance tool. Token holders could vote on proposals but had no direct claim on network activities. Such a model is common in decentralized ecosystems to maintain neutrality during early stages.
With new interoperability features and “Prividiums”—private, institution-ready ZKsync chains—entering real-world use, founder Alex Gluchowski says it is time to link the token to the network’s economics.
From Governance to Real Utility
Under the new model, every transaction and service on ZKsync will create value. This value will flow to a decentralized treasury managed by token holders.
The treasury will use proceeds to:
- Buy back ZK tokens from the market
- Distribute staking rewards to node operators
- Fund ecosystem growth
The goal is to keep value circulating within the network as usage increases.
ZKsync plans two main revenue streams:
- On-chain interoperability fees for transferring assets and messages between ZKsync and Prividiums
- Off-chain licensing fees for enterprise tools designed for banks and financial institutions
This approach aims to create a sustainable blockchain ecosystem. It rewards validators, developers, and governance participants based on actual network demand.
Understanding Governance Utility
Governance tokens originally aimed to decentralize decision-making. They granted voting rights but no direct profit-sharing, keeping tokens legally distinct from securities.
This created a gap where networks could grow without providing economic benefits to token holders.
ZKsync’s shift to “governance utility” addresses this issue. The ZK token will serve as both a voting tool and a means to distribute network value. Governance remains community-driven but links directly to measurable, on-chain activity.
Gluchowski describes this as a move toward “economically sustainable decentralization.”
How the New Model Works
ZKsync’s Elastic Network will enable seamless cross-chain transfers of assets and messages between public chains and private Prividiums.
Each transfer will incur small protocol fees. While low per transaction, these fees could scale significantly with institutional adoption. Gluchowski compares this potential to SWIFT, which processes over 50 million financial messages daily.
Off-chain revenue will come from licensing enterprise modules like compliance dashboards, audit tools, and reporting systems. These will be offered to financial institutions using ZKsync technology privately.
All fees, from on-chain and off-chain sources, will fund the governance-controlled treasury, maintaining an economic loop within the network.
Recent Upgrades and Future Steps
This proposal follows the recent Atlas upgrade, which improved Ethereum Layer-2 liquidity exchange. Atlas allows assets to move across chains within seconds and gives institutions direct Ethereum liquidity access.
Together, Atlas and the new token utility model advance ZKsync’s goal of a self-sustaining, interoperable network capable of supporting retail and institutional finance.
The governance proposal will enter community review on the ZK Nation forum before a formal vote. If approved, ZKsync will set a leading example of tokenized governance evolving into economic governance.
As Gluchowski states, “When the network is used, the ecosystem should benefit.” This shift reflects a broader trend toward utility-driven value in DeFi and Layer-2 ecosystems.
