Zksync has confirmed Zksync Ignite’X’s account on suspending the program, which created a pump for the ecosystem in early 2025. The move raises several issues in the community, which involves the activity and effectiveness of the ecosystem.
The latest updates to the ZKSYNC IGNITE program
Yesterday, March 13, after many rumors, Zksync Ignite announced the latest update about the pause of the Zksync Ignite program on its X account.
zksync ignite program update 📣
After careful consideration, the DEFI Steering Committee (DSC) decided not to renew the 2nd quarter and will start on March 17, 2025 with plans starting on March 17, 2025.
Why:
– zksync ignite (@zksyncignite) March 13, 2025
After thorough consideration by the DEFI steering committee, Zksync Ignite decided not to renew Season 2. For more details, they will terminate the plan starting from March 17, 2025. Elastic networkaims to enhance long-term interoperability and scalability between ZK chains. Likewise, due to technical preparation delays for native Interop, they need to distribute TVL more efficiently.
Furthermore, this change occurs in the bearish cryptocurrency market. In this case, ZKSYNC can adopt a more conservative spending approach, similar to other ecosystems that adapt to the current financial situation.
The ZKSYNC IGNITE program is a targeted program initiated by ZKSYNC in January 2025. The purpose of the program is to transform its layer 2 scaling solution into a unified mobility center for resilient networks. ZKSYNC’s first Token Program Proposal (TPP) was introduced to enhance liquidity across partially elastic chains through reward incentives, reduce fragmentation and drive user adoption. The program is managed by entities such as Merkl, OpenBlock Labs and the Defi Steering Committee (DSC), which distributes rewards to increase the Total Value Lock (TVL) in the ZKSYNC era.
Impact updates
Following the news of the program’s sunset, the ecosystem has recorded some responses from the public and community. As of writing, the overall value lock (TVL) of the entire ZKSYNC ERA ecosystem was $140 million, down from its $270 million peak (at the time of the ZKSYNC IGNITE program announcement). Many people are worried that the decline in TVL is a sign of the outflow of capital in ecosystems. In addition, TVL for most projects in the ecosystem has also experienced a decline.
Furthermore, over-focusing on resilient networks after the launch of the new version could present significant risks to the Zksync era, especially given the fierce competition for other layer 2 solutions such as optimism and arbitration. While other Tier 2 solutions are working to revitalize the ecosystem with a series of new updates, ZKSYNC is gradually losing its foothold as projects in its ecosystem seem to be losing momentum.
Initially, the ZKSYNC IGNITE program was a key channel to inspire users and incentivize project development. However, the loss of such incentives has further driven users and projects to deport, resulting in long-term negative impacts on the ecosystem.
Source: Defillama
However, many ZKSYNC supporters believe that this is a necessary and essential shift given the current challenging market conditions. Focusing on system development helps enhance user confidence in ecosystems with solid cores and real value. Furthermore, if the elastic network develops successfully, TVL can be fully restored.
About the ZKSYNC era
ZKSYNC ERA is an Ethereum-based 2-layer scaling solution that utilizes zero-knowledge (ZK) rolling technology to enhance scalability, security, and cost-effectiveness. It was developed by Matter Labs, and it is the first ZKEVM (Zero Knowledge Ethereum Virtual Machine) on Mainnet, providing full EVM compatibility for developers and users. The ZKSYNC era supports decentralized applications (DAPP), especially in DEFI, to serve as a center of liquidity in a resilient network.
With features like link governance and robust security, it positions itself as a key player in the Ethereum expansion ecosystem, despite challenges such as native interoperability latency across ZK chains.
