- ZKSync has canceled the second season of his stimulation program, Ignite.
- Beerarish market conditions have led to, among other things, the move.
- ZKSYNC will distribute all remaining rewards from 17 March 2025.
ZKSync announced on Friday that it had canceled the second season of his liquidity program, Ignite.
The zero-knowledge-driven-driven Layer 2 protocol showed that the relocation comes in the midst of the current Bearish market conditions, which in particular destroyed sentiment and prices are falling.
The decentralized financial stimulation program will stop per ZKSync on March 17, 2025.
“After a careful consideration, the Defi steering group (DSC) decided not to renew Ignite for season 2 and will be seated from March 17, 2025 by disabling rewards for period 6,” noted the ZKSync team via a via a Thread on x.
The Defi Steering Committee (DSC) mentioned several reasons for Sunteting Ignite. It includes the bearish circumstances of the cryptocurrency market. This has encouraged ZKSync to use a more conservative spending approach in the short to medium term, the platform noted.
Why ignite?
Following a cautious approach is intended to guarantee the sustainability of the ZKSync and the elastic network ecosystem. It is a movement that will see the protocol avoiding unnecessary spending against prevailing headwinds.
ZKSYNC Added in the update on X:
“Unfortunately, we now navigate on a Bearish market. In accordance with many other ecosystems, ZKSync has decided to be more conservative with expenditure in the short to medium term in response to these evolving circumstances. To stay sustainable, we make our focus and we spend smarter, instead of fighting headwind. “
Focus on elastic network
In addition, ZKSync sources turns to its long-term vision: the elastic network, a growing verifiable blockchain network driven by zero knowledge certificates. The team is of the opinion that continuing to invest heavily in the ignited program with one chain no longer matches this goal, especially as native interoperability in the elastic network-crucial for seamless cross-chain interactions.
The Ignite program, launched to stimulate the liquidity on the ZKSYNC era and position it as a Defi -Hub, has served its goal, but is now considered less critical in view of this technological and market clearance.
ZKSYNC will distribute all remaining rewards before March 17, 2025, with contracts for service providers concluded before March 30, 2025.
The ZKSYNC -Tokken acted slightly higher despite the news, where ZK floated almost $ 0.06982 at the time of writing on 14 March. The price of the Altcoin rose by almost 5% in 24 hours. After a recent sale, however, it remained 16% in the past week.