The Layer-2 network Zkssync has announced that it is sunsetting of the Ignite program, which rewarded users for providing liquidity, due to market conditions.
“After the careful consignment, the Defi Steering Committee (DSC) has decided not to renew the Ignite for Season 2 and will be the sunsetting of the program starting March 17, 2025 by offering rewards for the period 6,” Zksync Posted to x.
It added that the long -term vision is centered around the elastic network, consisting of many chains within the Zkssync ecosystem.
“Unfortunately we are navigating a bearish market today. According to many other ecosystems, Zksync has decided to be more conservative with spending in short to medium term in response to these emerging conditions,” he added. “To stay sustainable, we tighten our focus and spend smarter, rather than fighting the headwinds.”
The total amount locked (TVL) in Zksync has dropped nearly 50% since January 30 while the broader crypto market gets a correction that has seen Bitcoin and Ether lost 13% and 27% of their market covers last month.
The native token of Zksync (ZK) fell 35% at the same time.
