Matter Labs CEO Foresees ZKsync Governance Exploring Value Accrual Mechanisms
The ZKsync ecosystem is poised for significant changes as its governance community prepares to discuss new value accrual mechanisms for its token, according to Matter Labs co-founder and CEO Alex Gluchowski. He predicts that these discussions will focus on adding new functionalities to the ZKsync token to align with ecosystem growth and user demand.
Potential Upgrades in Token Governance
“The governance token is like a stem cell; it can evolve,” Gluchowski explained. “Governance participants can vote to enhance its functionality, add value accrual mechanisms, and make it more dynamic.” He anticipates that these discussions will take place soon within the ZKsync community and Elastic Network governance.
The Elastic Network comprises a collection of interconnected chains within the ZKsync ecosystem, promoting seamless interoperability. Gluchowski noted that this interoperability requires an updated approach to token value accrual and cross-network value exchange.
Why Value Accrual Matters
Token holders often prioritize value accrual mechanisms because these determine how tokens benefit from ecosystem growth. These mechanisms can involve:
- Revenue sharing with token holders
- Token burning to reduce supply
For example, Ethereum’s high burn rate during peak activity previously reduced its circulating supply, which many saw as bullish for ETH prices. However, recent changes in Ethereum’s data storage have lowered the burn rate, resulting in supply growth since April 2024.
Ethereum's Role in the Layer 2 Ecosystem
Despite these shifts, Gluchowski remains optimistic about Ethereum’s trajectory, emphasizing its role as the base assetfor a growing Layer 2 ecosystem.
“Ethereum is becoming the Internet of value,” he said. “Layer 2 networks catering to different market segments will rely on ETH as the primary store of value and native collateral.”
He envisions Ethereum's expanding Layer 2 landscape accommodating both high-risk DeFi experiments and institutional-grade financial applications.
The Need for Coordination
Looking ahead, Gluchowski stressed the importance of collaboration within the Layer 2 community to design value-return mechanisms that benefit Ethereum's core network.
“We need a coordinated effort to build mechanisms that channel value back to Ethereum,” he said, hinting that Matter Labs will soon share its strategic proposals.