[NEWS] ZKsync conducts ZK airdrop; market capitalization exceeds 120 billion yen

ZKsync, a layer 2 blockchain for Ethereum (ETH), began airdropping its own token "ZK" on the 17th. It appears that 45% of the tokens have already been claimed by more than 225,000 wallets.

ZKsync is one of the layer 2 solutions that uses ZK-Rollup. As the demand for Ethereum increases, issues such as rising Ethereum gas fees (fees) and declining processing performance have come to light. In particular, gas fees can cost several thousand yen in Japanese yen to send tokens.

To solve these issues, the number of Ethereum layer 2 projects has been increasing in recent years.

ZK Rollup uses zero-knowledge proofs to bundle multiple transactions into one and send it to the mainnet. This makes it possible to prevent transaction congestion, declining processing power, and rising gas fees.

What is ZKsync?

ZKsync has two types of networks: "Era" and "Lite". In particular, Era is compatible with EVM, and is known for its low fees and fast transaction confirmation.

The airdrop is being requested by the ZkSync Association, a non-profit organization launched last week by ZKsync developer Matter Labs. According to CoinGecko, ZK started at $0.31 and is trading at $0.22 at the time of writing.

The circulating supply is about 3.7 billion ZK with a market capitalization of about $800 million. On a fully diluted basis, the market capitalization will reach about $4.5 billion. ZK is currently being traded on cryptocurrency exchanges such as Binance, Bybit, and Bitget.

According to Matter Labs, of the total issuance of ZK of 21 billion ZK, 66.6% will be allocated to the community, including early users, and 33.3% to employees and investors. Of these, 16.1% of ZK will be allocated to employees and 17.2% to investors, which will be locked for one year and then released over three years.

The approximately 3.7 billion ZK airdropped this time represents 17.5% of the total issuance. In addition, 89% of the approximately 3.7 billion ZK was distributed to early users, and 11% was distributed to ecosystem contributors such as ZKsync's native projects and on-chain communities.

The remaining ZK supply will be divided, with 29.3% given to ZkSync's token assembly to be used for new governance purposes. In addition, the remaining 19.9% ​​will be allocated to ecosystem initiatives.

Reference:Announcement
Image: Shutterstock

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