ZKsync Releases Proposal To Launch Ignite Program And Build Liquidity Hub
In Brief
ZK Nation releases a proposal suggesting the distribution of 325 million ZK tokens to launch the Ignite Program, which aims to establish a DeFi liquidity hub on the ZKsync Era.
Community overseeing the development of the ZKsync protocol, ZK Nation, released a proposal suggesting to distribute 325 million ZK tokens over nine months to deploy the Ignite Program aimed at establishing a decentralized finance (DeFi) liquidity hub on the ZKsync Era. The objective of this program is to enhance total value locked (TVL) in DeFi and improve liquidity across all interoperable ZK chains.
The proposal has a standard voting period of seven days, with an automatic 7-day extension if a quorum is reached at any time during this period.
The Ignite Program’s primary goal is to create a strong, unified liquidity source on the ZKsync Era to support developers and users across the Elastic Chain, allowing seamless access to liquidity through native interoperability. This consolidated liquidity forms what is called a “liquidity hub”—a decentralized, permissionless framework allowing users and developers to access liquidity across ZK Chains via third-party applications and protocols on ZKsync Era.
Out of the total token allocation, 300 million ZK tokens will be distributed across six capped minters as rewards to users for active participation in specific DeFi applications and protocols. Additionally, 25 million ZK tokens, allocated to four capped minters, will cover administrative costs for program deployment and management, with a buffer for unforeseen circumstances.
In managing the program, OpenBlock Labs will act as the “analytics manager,” responsible for evaluating DeFi applications through a quarterly review, recommending ZK token allocations, and updating these recommendations biweekly based on performance data. Merkl will oversee the technology and program operations, including designing and managing the Ignite website and providing operational support to ensure smooth program execution.
A five-member DeFi Steering Committee (DSC) will hold limited administrative authority, primarily veto power over critical program decisions. This includes approval of DeFi protocol and application eligibility, proposed ZK token distributions, marketing and operational strategies, program automation adjustments, and renewal recommendations if the program falls short of performance metrics.
Ignite Program: Goals, Design, And User Experience
The program’s main objectives are to enhance DeFi liquidity, build strategic asset depth to reduce slippage and generate organic fees for liquidity providers.
Every two weeks, the program’s token allocations are directed to selected pools and assets within participating DeFi applications based on recommendations from the analytics provider, OpenBlock Labs, and reviewed by the DeFi Steering Committee (DSC), an independent group of experts. This iterative design allows the program to strategically target its core metrics.
Through the Ignite website, users will be able to view available incentives from participating DeFi protocols and directly contribute liquidity. Pending ZK rewards will be updated approximately every 8 hours on the site. The current proposal allows for weekly reward claims from the Ignite platform, although community feedback is being sought on this point.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
