- ZKsync ends Ignite program: Rewards stop March 17, citing diminishing returns on TVL
- ZKsync shifts focus to Elastic Network, prioritizing long-term over short-term incentives
- Remaining Ignite rewards will be distributed; service contracts end by March 30, 2025
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. In an announcement, the team behind the initiative said its DeFi Steering Committee (DSC) has decided to discontinue the program and turn off rewards for period 6.
ZKsync Ignite Program Ending: Diminishing Returns
Why the sudden change? The team pointed to several reasons, primarily its desire to concentrate on its long-term vision of focusing on the Elastic Network. According to the ZKsync Ignite team, the move is about channeling its resources toward accelerating the realization of this goal.
The ZKsync Ignite team is also prioritizing seamless native interoperability across the Elastic Network. They claim the Ignite program was becoming a distraction, and adding more TVL would likely deliver diminishing returns. This suggests that the program wasn’t achieving its intended goals as effectively as hoped.
Related: zkSync (ZK) Price Prediction 2024-2030: Will ZK Price Hit the $2 Level Soon?
Although the initial reasons behind ZKsync Ignite’s decision are internally driven, external factors involving the current market realities play significant roles in bringing the group to its conclusion. ZKsync says it needs to be more conservative in the short to medium term to better adapt to developing market conditions.
ZKsync Ignite Rewards and Service Contracts
ZKsync reassured users that its latest action is in their best interest. 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.
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