ZKSync [ETH] Token Launch Date Announced, But Not Everyone Is Happy

Layer-2 scaling solution for Ethereum [ETH], ZKSync, has announced the date for its token launch.  According to the announcement, the ZK token would launch

ZK token launch: Layer-2 scaling solution for Ethereum [ETH], ZKSync, has announced the launch date for its highly anticipated token. According to the announcement, the ZK token will launch on June 17.

However, the disclosure seems to have sparked controversy, especially among early users of the protocol. zkSync began developing its Mainnet in 2023.

The project’s fundamentals have attracted a large number of users to the network. There was also speculation that the project would reward its community with the ZK token, which ZKSync appears to have fulfilled.

Not everyone is happy

In the announcement dated June 11, the protocol stated “ZK is the Endgame.” It also provided details on the token distribution. According to the information obtained by AMBCrypto, 17.5% of the total supply of 21 billion will be allocated to the community.

Additionally, the team and investors will receive 16.1% and 17.2%, respectively. The remaining tokens will be dedicated to the token assembly and ecosystem initiatives.

Source: ZK Nation

In this regard, the project disclosed,

“17.5% of the overall supply will be distributed through a one-time airdrop. The rest will be distributed over time, through ecosystem initiatives, managed by the ZKsync Foundation, and the ZK Nation governance process, to support a growing ecosystem as new users come onchain.”

However, this development did not sit well with some of the early users. At press time, AMBCrypto found several comments indicating that the distribution was unfair.

On X, a user with the handle “Caneleo” mentioned that the maximum allocation should have been 20,000 tokens. According to the user, this would have allowed ZK to reach some wallets that were deemed ineligible.

TVL tanks, but will ZK launch at $1?

Meanwhile, ZKSync explained how it arrived at the distribution. It noted that 89% of the 17.5% was allocated to those who transacted a substantial amount on the network.

The remaining 11% went to developers, researchers, and the like. Nevertheless, the clarification did not change the opinions of some of the ineligible users.

Moreover, the Total Value Locked (TVL) in ZKSync had begun to tank at press time. The TVL measures the value of assets locked or staked in a protocol.

A few weeks ago, the TVL of ZKSync Era was almost $200 million. This surge was driven by participants’ belief that the protocol would yield a good return.

Source: DeFiLlama

However, at press time, the value had dropped to $133.03 million. The recent decline suggested that users were increasingly withdrawing their assets from the protocol.

Realistic or not, here’s ZK’s market cap in ETH terms

If this continues, the TVL could fall as low as $100 million. In the meantime, there have been predictions about the ZK token, with some suggesting it could reach $1 at launch.

However, details from Whales Market, a pre-listing platform, showed the price trading at $0.34 at the time of writing.