- The project disclosed 17.5% of the total 21 billion supply would go its early users.
- However, the TVL dropped to $133 million amid debate about fairness with the distribution.
As an analyst with experience in the crypto market, I have seen my fair share of token launches and distribution models. The ZKSync announcement, while exciting for some, has sparked controversy among early users due to perceived unfairness in the distribution of tokens.
In simple terms, ZKSync, a layer-2 scaling solution for Ethereum [ETH], has revealed that it will introduce its native token during the second week of June. Specifically, the launch is scheduled for the 17th of this month.
The revelation sparked significant debate, particularly amongst the initial adopters of the protocol, since zkSync initiated its Mainnet development in the year 2023.
As an analyst, I’ve observed that the foundational elements of this project have drawn a significant number of users to its network. Additionally, there were rumors circulating within the community that the project would distribute its native token, ZK, as rewards. It appears now that ZKSync has indeed delivered on this promise.
Not everyone is happy
In the announcement dated June 11th, the text stated “ZK represents the final stage.” It additionally disclosed details regarding the token allocation. Based on our obtained information, approximately 17.5% of the total 21 billion tokens will be assigned to the community.
As an analyst, I’d like to add that the team members and investors would each hold significant stakes in the project. Specifically, the team would own a 16.1% share, while the investors would control a 17.2% percentage. Meanwhile, other dedicated individuals would focus on token assembly and ecosystem development initiatives.
With respect to this, the project disclosed that,
As a researcher studying the distribution mechanism of this project, I can tell you that approximately one fifth (17.5%) of the total supply will be distributed through a single airdrop event. The remaining portion of the tokens will be allocated over an extended period, primarily via ecosystem initiatives managed by both the ZKsync Foundation and the ZK Nation governance process. This staged distribution approach aims to foster a thriving ecosystem as more users join the onchain community.
Some early users expressed disappointment with the recent development. Upon investigation by AMBCrypto, several complaints were uncovered regarding the perceived unfairness of the distribution process.
User “Caneleo” on X suggested that the limit for token allocation should have been set at 20,000 tokens. In his opinion, such a move would have enabled ZK to access certain wallets that had previously been excluded.
TVL tanks, but will ZK launch at $1?
As a researcher, I’d like to share how ZKSync described their distribution mechanism. They mentioned that approximately 17.5% of the total supply was earmarked for early adopters and active participants in the network. Specifically, around 89% of this portion went to individuals who had previously conducted significant transactions on the platform.
As a researcher, I found that approximately 11% of the respondents identified as developers or researchers. However, it’s important to note that this clarification did not alter the perspectives of certain individuals who were deemed ineligible for the study.
At present, the Total Value Locked (TVL) in ZKSync was on a downward trend. This metric signifies the amount of assets that are secured or deposited within the protocol.
About three weeks ago, I observed a significant increase in the Total Value Locked (TVL) of ZKSync Era, reaching nearly $200 million. This growth can be attributed to the faith and confidence investors placed in the protocol’s potential for generating favorable returns.
As of the moment I’m sharing this information, the value had dropped to $133.03 million. This latest decline suggests that an increasing number of users are withdrawing their assets from the protocol.
Realistic or not, here’s ZK’s market cap in ETH terms
If this trend persists, the total value locked (TVL) in the system could potentially decrease to $100 million. Simultaneously, some analysts anticipate that the ZK token may reach a value of $1 during its initial launch.
At present, information from Whales Market, a platform prior to listing, indicates a trading price of $0.34 for the asset in question.
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2024-06-12 06:15