ZKsync Terminates Ignite Rewards Program Amid Market Volatility
The ZKsync governance team has announced the early closure of the Ignite rewards initiative, which was designed to boost liquidity in DeFi markets.
In an official forum announcement, committee member Karthik clarified that while Ignite’s first season achieved its intended goals, further funding no longer aligns with the project’s long-term strategic direction.
The report highlights Ignite’s contribution to liquidity growth, with TVL rising from $100 million in January to a peak of over $270 million. Additionally, trade execution improved, with slippage for transactions under $1 million reduced to 1bps, demonstrating a clear efficiency gain.
Despite these milestones, the initial plan for a 9-month rollout distributing 300 million ZK tokens has been reassessed.
The decision to terminate Ignite ahead of schedule was driven by a strategic realignment toward Elastic Network, a multi-chain Layer 2 infrastructure. This shift allows the team to dedicate resources to enhancing native interoperability, a critical component of ZKsync’s development roadmap.
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Seamless native interoperability across the Elastic Network is a top priority, but the tech needed to implement this is taking longer than expected. Adding more TVL now, before it’s ready, will likely deliver diminishing returns on spend—and we want every effort put towards this goal to count,
the official statement confirms.
Amid the current market downturn, the ZKsync team has adopted a prudent financial approach, adjusting short- and medium-term expenditures to align with evolving conditions. Consequently, all Ignite rewards will be distributed by March 17, 2025, and contracts with service providers will be concluded by March 30, 2025.
Going forward, ZKsync will focus on optimizing tokenomics to enhance token holder value and introduce new initiatives to support both developers and the broader community. Additionally, project partners, including OBL, have announced plans to release a detailed closing report for Ignite’s first season, outlining cost analysis, performance metrics, and key lessons learned.
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