ZKsync’s ZK Airdrop Is Coming ‘Next Week,’ Here’s What to Expect

Similar to other layer-2 networks, ZKsync Era positions itself as an efficient and affordable solution for conducting transactions on Ethereum. As announced by Matter Labs, the upcoming ZK airdrop is anticipated to be the “most extensive token distribution to users among major L2s,” with approximately 3.7 billion tokens allocated for user participation.

As a crypto investor, I’d interpret this information as follows: The estimated pre-market prices for ZK on Aevo, a reputable cryptocurrency perpetuals exchange, currently place the token at a value of $.66. If we calculate the fully diluted value (FDV) of the upcoming airdrop based on this price, it would amount to over $2.5 billion. This figure is almost three times greater than ZKsync Era’s current total value locked (TVL), which stands at $815 million.

According to the distribution scheme, approximately 89% of the airdrop allotment is allocated for ZKsync users. This category encompasses individuals who have conducted transactions through ZKsync and reached a certain level of engagement (the exact criteria were not disclosed). The remaining 11% is designated for contributors to the ecosystem: zkSync native projects (5.8%), on-chain communities (2.8%), and builders (2.4%).

Matter Labs faces scrutiny from other layer-2 projects as they express disagreement with the company’s attempt to trademark the term “ZK,” a popular shorthand for “zero-knowledge” cryptography. This technology is essential for ZKsync and numerous other blockchain initiatives. Following backlash from the crypto community, Matter Labs retracted its application, citing the need to safeguard their users from confusingly named projects and tokens.

As a researcher studying the latest announcement from Matter Labs, I can tell you that they have set a limit on the number of tokens that any single address can receive during their ZK airdrop. Specifically, this cap is set at 100,000 tokens. This approach ensures that large investors or “whales,” as they are colloquially referred to in crypto circles, do not dominate the token distribution and allows for more equitable rewards among the broader community members who have contributed to ZKsync in various ways.

The team disclosed that Matter Labs staff would receive 16.1% of ZK tokens as part of their compensation, while Matter Labs investors were allocated 17.2%. These tokens will be kept in a locked state for a year before being gradually unlocked over the next three years.

The remaining token allotment will be distributed: to ZKsync’s newly proposed “Token Assembly” which accounts for 29.3%, and towards diverse “Ecosystem Initiatives,” totaling 19.9%.

In their statement to CoinDesk, Matter Labs explained that distributing more airdrop tokens than to their team and investors is not just symbolic for the community. Instead, it signifies that when ZKsync’s governance system goes live in the upcoming weeks, the community will have the most significant influence over directing token upgrades due to having the largest supply of liquid tokens.

Airdrop politics

The airdrop is one among several recent airdrops, such as those from StarkNet and EigenLayer. Some disgruntled users were disappointed with the amount of tokens they received and voiced their concerns. Notably, in the case of EigenLayer, the team’s restriction on airdrop participants from the U.S. and numerous other countries sparked strong criticism from some users.

As a researcher studying the implementation of an airdrop at Matter Labs under the leadership of CEO Alex Gluchowski, I can share that great care and consideration have been given to the design process. Regrettably, not everyone will be satisfied with the outcome, but we have explored various alternatives to address potential concerns.

According to Gluchowski’s team, prioritizing communities heavily was their top priority among the essential elements guiding their distribution plan, as mentioned by the CEO of Matter Labs.

Gluchowksi indicated in the interview that certain countries are off-limits for token airdrops due to sanctions or unfavorable reception. He failed to disclose which nations qualify, leaving the specifics of ZKsync’s compliance and region restriction methods undisclosed.

ZK drama

As a crypto investor, I’ve been keeping a close eye on the developments surrounding Matter Labs and the ongoing controversy over their trademark application for the term “ZK.” It all started when competitors Polygon and Starkware raised concerns, as they too have used and continue to use ZK technology in their respective projects. The public perception is that Matter Labs was attempting to monopolize a “public good” within the Ethereum ecosystem by trying to claim exclusive ownership over the term “ZK.”

Gluchowski was defiant when he spoke to CoinDesk this week.

As a researcher, I’ve come across accusations from certain individuals who have registered the trademark “STARK.” This term refers to a specific type of zero-knowledge proof that was initially developed by Starkware and co-founded by Eli Ben-Sasson. Nowadays, it’s widely adopted among Ethereum layer-2 teams.

As a researcher investigating this topic, I’d like to clarify what exactly we’re referring to here. We all know that businesses and organizations register trademarks for their specific products, services, or tokens to secure exclusive rights.

“Gluchowski acknowledged the concerns of the community and chose to retract our trademark application. We did not wish to give any hint that we intended to exploit the system for our gain,” I explained to CoinDesk.