The creator of the Ethereum layer 2 network, ZKsync, has unveiled a proposal to transform its $ZK token from a governance instrument into one with real economic utility.
A new proposal, “From Governance to Utility: ZK Token Proposal, Part I,” posted Tuesday by Alex Gluchowski on the ZKsync community forum, describes how network usage and enterprise licensing could directly inject value back into the token economy.
This move could change how ZKsync’s ecosystem will generate and distribute value. Instead of $ZK functioning solely as a governance token, the proposal would make network activity, such as interoperability and enterprise usage, directly influence its economics.
The proposal argues that the network’s growing ecosystem, which now includes modular chains, private “Privium” networks, and a cross-chain interoperability layer known as the Elastic Chain, needs a token model that scales with it.
“The ZK token started as a governance tool.” says the message. “Through governance, it can now become the heart of an incorruptible economy. »
Under this plan, ZKsync would introduce two main revenue streams. The first would come from on-chain interoperability fees, charged when users move assets or messages between ecosystem rollups. The second would be off-chain licensing revenue from enterprise tools, such as compliance or reporting modules tailored to institutions relying on the protocol.
Both revenue streams would flow into a governance-controlled mechanism that would buy back $ZK tokens from the market.
These purchased tokens would then be allocated to three uses: burning to reduce supply, rewards for decentralized operators, and ecosystem funding to support developers and public goods. The proposal emphasizes that all parameters – from fee levels to distribution ratios – would be set by community governance rather than the core team.
By directly tying usage to economic outcomes, zkSync hopes to create a self-sustaining loop in which activity generates revenue, the revenue supports the token, and the token in turn secures and funds the network.
According to CoinMarketCap, the ZK token is down 54% over the past year.
Yet major questions remain. The proposal does not specify the amount of fees, redemption schedules or how the issues will be managed, details expected in later installments.
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