zkSync $ZK researchZKsync is an Ethereum network scaling solution that utilizes Zero-Knowledge (ZK) Rollup technology. This makes it part of the second layer (Layer 2) of solutions aimed at reducing transaction fees and increasing bandwidth on the Ethereum network.ZK Rollups allow transactions to be conducted off-chain, which significantly reduces the load on the Ethereum network and thus gas fees. Only evidence of the correctness of these transactions is published on the main chain, which provides a high degree of security and scalability. Thanks to ZK Rollups, zkSync can process thousands of transactions per second, which significantly exceeds the capacity of the main Ethereum network.
TVL
zkSync's TVL was reported to be around $86.79 million, showing a minor decline of 2.15%. This figure indicates a relatively stable ecosystem despite fluctuations, suggesting ongoing user engagement and trust in the platform. Despite a decrease in TVL, zkSync still holds a position as a leading Layer 2 solution, although it lags behind competitors like Arbitrum or Optimism in terms of TVL. This could be due to various factors including less aggressive marketing or airdrop strategies compared to others.
Fundraising
Over the years, ZKsync has attracted significant investment through various fundraising rounds, reflecting investor confidence in its potential to solve Ethereum's scalability challenges.
Funding Rounds:
1. Seed Round - 23 September 2019:
Amount Raised: $2.00M
Lead Investor: Placeholder Ventures
Other Investors: DragonFly Capital, 1kx, Hashed Fund, Dekrypt Capital.
2. Series A - 1 October 2021:
Amount Raised: $6.00M
Lead Investor: Andreessen Horowitz (a16z)
Other Investors: DragonFly Capital, 1kx, Union Square Ventures, Placeholder Ventures.
3. Series B - 8 November 2021:
Amount Raised: $50.00M
Lead Investor: Andreessen Horowitz (a16z)
Other Investors: DragonFly Capital, ConsenSys, 1kx, OKX Ventures, Alchemy, among others.
4. Undisclosed Funding - 27 January 2022:
Amount Raised: $200.00M
Investor: BitDAO
5. Series C - 16 November 2022:
Amount Raised: $200.00M
Lead Investors: Blockchain Capital, DragonFly Capital
Other Investors: Andreessen Horowitz (a16z), Lightspeed Venture Partners, Variant.
The gradual increase in funding and the participation of prominent investors such as Andreessen Horowitz, DragonFly Capital and Blockchain Capital emphasize the market's confidence in ZKsync's technology and its potential to address Ethereum's scalability challenges. Recent rounds have given ZKsync the resources to explore and innovate further, including integrating with broader blockchain functionality or developing new tools for developers and users.
Tokenomics
Maximum offer: ZK 21.00 billion
Token distribution:
Token Assembly - 29.3%
This allocation is for participants and platform creators who make significant contributions to the ecosystem. Their contributions may include development, protocol improvements, or integration of new services.
Ecosystem Initiatives - 19.9%
These tokens are allocated to support initiatives aimed at the growth and development of the ZK ecosystem. This may include project funding, developer grants, network usage incentive programs, and marketing campaigns.
Investors - 17.2%
Investors who have invested in a project receive this share of tokens. This can include investments at various stages, from seed rounds to later investments. These tokens can be locked for a certain period to prevent immediate sale after unlocking.
Team - 16.1%
Project team members receive tokens for their work in creating and developing the project. These tokens are usually also vested to incentivize long-term team participation in the project.
Airdrop (Users) - 15.6%
This portion of tokens is distributed to users, possibly as part of an airdrop or other incentive programs to attract and retain users in the ecosystem. The tokens are allocated and already unlocked, allowing users to use or trade them immediately.
Airdrop (Contributors) - 1.93%
Vesting
Investors and Team:
Initial Unlock (TGE - Token Generation Event): 17.2% of the tokens allocated to investors and 16.1% to the team are set to be unlocked.
Cliff: There is a one-year cliff period. This means that no tokens will be unlocked until one year after the initial unlock date.
Unlocking Schedule:
Date of First Unlock: June 17, 2025
First Unlock Amount: 11% of their allocation becomes available.
Post-Cliff Vesting: After the cliff, tokens vest at a rate of 2.47% per month from July 17, 2025, to June 17, 2028.
End of Vesting: The vesting period concludes on June 17, 2028, with all tokens fully vested by this date.
Airdrop (Users):
Initial Unlock: 100% of the tokens allocated for users' airdrop are unlocked at Token Generation Event (TGE).
Unlock Date: June 17, 2024
Airdrop (Contributors):
Initial Unlock: 100% of the tokens allocated for contributors' airdrop are also unlocked at TGE.
Unlock Date: June 24, 2024
Untracked Tokens:
Represents a large portion (49.2%) of the total supply where the vesting details are not available or disclosed. These tokens could potentially be unlocked at any time, which might affect market dynamics.
Summary:
Total Unlocked: At the time described, 17.5% of the total token supply is unlocked, with 33.3% still locked.
Vesting Strategy: The strategy for investors and the team involves a significant cliff to ensure long-term commitment and align interests with the project's success over time. The immediate vesting for airdrop participants encourages community engagement right from the start.
This vesting schedule aims to balance immediate liquidity with long-term token distribution, ensuring stability and incentivizing sustained involvement from different stakeholders in the zkSync ecosystem.
Conclusion
The project has good funding and everything to pump up the price going forward. There is no point in writing about airdrop, as it was weak and the developers distributed tokens to themselves. This only confirms the further pumping of the asset after accumulation. Now it is not a bad project to buy in the medium term with the target indicated on the chart. TVL shows that not everything is not so bad compared to other L2s, only Scroll is better statistically.... Not the kind of project to invest in for “technology” or idea, but definitely for capital appreciation in a year is not a bad option.
Horban Brothers!
