ZKSYNC’s Defi Steering Committee (DSC) said it would not renew Zksync Ignite, its liquidity reward program, as the project changes its focus on the broader network expansion.
The DSC has confirmed that Ignite’s second period will not continue and that the program will not be stopped on March 17. It also prevents reward allocation for the period 6, the final stage of the first program of the program.
Zkync said it will focus its resources on the elastic network, an architecture aimed at changing the platform to an ecosystem of coherent zero-knowledge (ZK) chains. “Our long -term vision for Zksync is increasingly centered on the elastic network, and we want to focus our resources to speed it up to be a reality,” the project said.
It said the pouring of its resources into a single-chain program did not align with the purpose of this interoperability.
Cointelegraph reached the lab of objects, the company behind Zksync, for comment, but no response was received at the time of writing.
Source: ZKSYNC IGNITE
Navigating a Bearish Crypto Market
The team acknowledged that current market conditions influenced the decision to end the fire.
“To stay sustainable, we tight our focus and spend more smarter than fighting headwinds,” the team said.
The ZK tokens performed well in 2024, reaching a high $ 0.26 on December 8. However, ZK prices failed to maintain their high ones, experiencing constant selling pressure as market conditions worsen. The token is currently trading at $ 0.06, a 76% fall from its price in December.
ZKSYNC token price chart. Source: Coingecko
Related: ZKSYNC targets 10k TPS and sub-zero fees by 2025 Roadmap goals
Zkync Ignite has strengthened project TVL for $ 270 million
According to ZKSYNC, the program exceeds the purpose of driving the DEFI total amount locked (TVL) up to $ 100 million. The program helped TVL drive over $ 270 million, making the chain trading better. However, Defillrama data shows that TVL of ZKSYNC is currently at $ 139 million.
The total amount of Zksync is locked. Source: Defillma
The Ignite program is original Plan To allocate 300 million ZK tokens for nine months so that users can provide users who will provide liquidity to major tokens. The first season was scheduled from January 6 to March 31, allocating 100 million tokens worth about $ 21 million to launch. At current ZK prices, 100 million tokens cost only $ 6.8 million.
Aside from Zksync, the broader crypto market also experiences a collapse throughout the industry, with leading crypto assets such as Bitcoin (Btc) and ether (Eth) struggles to maintain prices.
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