ZKsync

• ZKsync Era is an Ethereum Layer 2 zero-knowledge rollup developed by Matter Labs.

• It uses validity proofs so withdrawals to Ethereum do not require the week-long challenge period optimistic rollups impose.

• ZK is the governance token.

• Total supply of 21 billion, with a large share allocated to the community and ecosystem.

• Governance is exercised through a token assembly alongside other governance bodies.

• Gas is paid in ETH rather than ZK.

Pros:

• Validity proofs allow fast withdrawals without a fraud-proof waiting period.

• The ZK Stack lets other projects deploy their own chains using the same technology.

• Long operating history relative to newer zkEVM entrants.

Cons:

• In April 2025 an admin key for a distribution contract was compromised and roughly 111 million unclaimed ZK tokens were minted and sold. Matter Labs said the protocol itself and user funds were unaffected.

• The 2024 airdrop drew heavy criticism over sybil filtering and allocation fairness.

• Activity has fallen well below its peak.

• Exposure to one of the longer-running zero-knowledge rollups with a working proving system.

• The ZK Stack gives it a second business beyond its own chain.

• The 2025 key compromise and the airdrop controversy both belong in any assessment.

• Validity proofs enabling withdrawal to Ethereum without the multi-day challenge delay optimistic rollups require.

• Optimistic rollups make withdrawals slow because fraud proofs need a challenge window.

• Validity proofs establish correctness upfront, so exit is fast.

• Founded by Alex Gluchowski and Alexandr Vlasov, operating as Matter Labs.

• Backed by a16z, Dragonfly and others.

• No public sale. ZK was distributed via airdrop in June 2024.

• Administrative key compromise has already occurred once in a distribution contract.

• Centralised sequencer.

• Declining activity relative to competing Layer 2s.

• Large supply with continuing unlocks.