ZKsync is pulling the plug on its Ignite DeFi program.

The initiative, designed to boost liquidity and user activity on the ZKsync network, will end on March 17, 2025.

As part of its efforts to boost liquidity and user activity, ZKsync launched the Ignite program and invited users to join the first season. However, the team has now announced that the program will be shutting down.

In an announcement on Friday, the ZKsync Ignite team said its DeFi Steering Committee (DSC) has decided to discontinue the program and turn off rewards for period 6, which will begin on March 17, 2025.

The team said it will be pivoting its strategy to concentrate on its long-term vision of focusing on the Elastic Network and prioritizing seamless native interoperability across the network. According to the team, this move is about channeling its resources toward accelerating the realization of this goal.

The ZKsync Ignite team also said the addition of more TVL would likely deliver diminishing returns. This suggests that the program wasn’t achieving its intended goals as effectively as hoped and pivoting to another strategy is the best course of action.

While the initial reasons behind ZKsync Ignite’s decision are internally driven, external factors, such as the current market realities, also play significant roles in bringing the group to its conclusion. According to ZKsync, it needs to be more conservative in the short to medium term to better adapt to developing market conditions.

ZKsync Ignite’s latest action is in the best interest of its users, the team added. According to the announcement, the steps taken align with the program’s original plans, which include adapting to changing market dynamics. All remaining rewards will be distributed on March 17, and all service provider contracts will be concluded by March 30, 2025.