Zksync, one of the prominent L2 chains on Ethereum, will stop its incentive. With the continued sliding price of the ZK icon, the project team decided to slow down the tank spending.
Zksync has announced that it will not renew the IGNITE incentive program for another season, noting the unfavorable market conditions. The program will be stopped from March 17, where ZKSYNC re -evaluates and incentives.
ZKSYNC IGNITE 📣 Update
After looking carefully, the DEFI (DSC) guidelines decided not to renew the ignition of season 2 and will exchange the program starting from March 17, 2025 by stopping the rewards for the period 6
Here why:
– ZKsync IGNITE (@zksyncity) March 13, 2025
The last incentives will be paid by March 17. The first season, which started on January 6, distributed ZK codes to 300 meters as incentives, but the program coincided with a greater decrease in the market price.
Previously, Zksynk performed one of the most post Air dropsAnd that still leaves some users mock their rewards. Later, Zksync continued incentive programs to maintain its activity and increase its location among the L2 chains.
Despite the campaigns, the original ZK icon was shattered after the Airdrop and continued in the downward direction. ZK has revealed more as traders lost an interest in the distinctive materials of Altcoins and L2. The original was traded at $ 0.069, a decrease from the December summit above $ 0.26. In addition to the shed of the former holders, ZK is shortened, with more 37 % In a short open interest.
Previously, Zksync claimed that she was about to launch Rolluped Rollups True Zero. The project launched multiple chains, including Zksync era and ZKsync LiteZksync L2 chain that has been renamed. After the stalled incentives, the project will turn its attention to the flexible network and the features of the interconnection.
The ZKsyNC era lost its community after Airdrop
All ZKSYNC statistics and their networks show a deep flow to users when losing incentives. Currently, Zksync Era carries less than 20,000 active daily governorates, while before Airdrop, he competes with al -Qaeda and Arvi activity.
Since then, the series has not been able to draw enough liquidity and applications. Currently, the ZKSYNC era only holds 139.3 million dollars In total liquidity, which makes its team a pivotal for new products. Zksync appeared at a time of increasing competition between L2 chains, as all new projects have gained great attention.
The IGNITE incentive was the largest driver in the Defi Locked value, which led to a peak of $ 267 million. The goal of the series was to increase the activity by adding liquidity to the Defi sector. During the IGNITE incentive, ZK also reduced its volatility and providing a deeper liquidity gathering.
The IGNITE incentive is designed to be responding to the market conditions, and the DEFI guidance committee in ZKSYNC decided that the program was very expensive to support it. The initial incentives for depositing liquidity in ZKsyNC have provided very high returns more than 40 %, although they also pose a threat to investors.
Zksync Foundation Reintems the Governance for the coming months
Zksync will have a more active role in drawing the series’s path during the current downward conditions. Zksync depends on the ethereum ecological system for its success, including liquidity.
Unfortunately, last year, the ZKSYNC supplies from Stablecoins witnessed 40 % of the external flows, to only to only 74 million dollarsThis makes it a relatively unprocessed L2 series.
One of the main areas for the concentration of ZKsyNC will be better than the distinctive symbol of the original ZK code. The original may expect to be used in various incentives on the chain again, as well as governance experiences.
The slow performance of ZKSYNC, despite the initial noise, questioned the list of multiple new L2 chains. After a year of active launch of about 150 new chains, almost all L2 showed a limited activity. Liquidity and applications flocked to a handful of networks with the largest liquidity of Stablecoin, Defi and Dexs.
While ZKsyNC managed to build a DEXS ecosystem, lending gatherings and other Defi applications, its activity was limited and displayed relatively small returns. Most valuable flows are stimulated to ZKSYNC and inorganic. Currently, Zksync is replacing some incentives to focus on the elastic network project.
Cryptopolitan Academy: Tired of market fluctuations? Learn how Defi can help you build a fixed negative income. Score