The creator behind the Ethereum layer 2 network, ZKsync, has submitted a proposal to transform its $ZK token from a governance instrument to a token 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, outlines how network usage and enterprise licensing could directly return value to the token economy.
The move could change the way the ZKsync ecosystem will generate and distribute value. Instead of $ZK functioning purely as a governance token, the proposal would have network activity, such as interoperability and enterprise usage, directly influence its economics.
The proposal argues that the growing network ecosystem, which now includes modular chains, “Prividium” private networks, and a cross-chain interoperability layer known as Elastic chain, needs a token model that evolves with it.
“The ZK token started as a governance tool.” says the publication. “Through governance, it can now become the heart of an incorruptible economy.”
Under the plan, ZKsync would introduce two main revenue streams. The first would come from on-chain interoperability fees, which are charged when users move assets or messages between ecosystem rollups. The second would be revenue from licenses outside the enterprise toolchain, such as compliance modules or reports designed for institutions that rely on the protocol.
Both revenue streams would flow into a governance-controlled mechanism that buys back $ZK tokens from the market.
Those purchased tokens would then be allocated to three uses: burning them to reduce supply, staking rewards for decentralized operators, and ecosystem funding to support developers and public goods. The proposal emphasizes that all parameters, from fee levels to distribution rates, would be set through community governance and not by the central team.
By linking usage directly to economic outcomes, zkSync hopes to create a self-sustaining loop where the activity generates revenue, the revenue backs 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.
Still, important questions remain. The proposal does not specify the amount of fees, buyback schedules or how emissions will be managed, details that are expected in later deliveries.
Read more: UBS tests ZKSync’s Layer-2 technology, showing increased TradFi interest in cryptocurrencies
