The leading Ethereum 
$1,891 scaling solution, ZKsync, which has been in the spotlight due to its 2024 AirDrop, has announced the termination of its Ignite incentive program. Following the distribution of rewards for the sixth phase of the program’s first season, ZKsync will completely conclude Ignite. This decision stems from the ongoing downturn in the cryptocurrency market and the desire to concentrate on ZKsync’s long-term strategies.
Adopting a More Cautious Spending Strategy
According to an official statement from ZKsync, a prudent spending strategy will be adopted due to the negative market environment. In line with this policy, budgets allocated for incentive programs and rewards will be reduced, and resources will be redirected to more strategic areas.
The altcoin project stated that it made this decision to mitigate the impacts of market uncertainty and the declining trend in the cryptocurrency market. The primary goal of the project will be to direct its resources towards developing a new network infrastructure called “Elastic Network.”
Technical Developments Prompt a Strategic Shift
ZKsync also decided to halt the Ignite program due to the planned technical infrastructure developments taking longer than anticipated. The project aims to ensure seamless and local-level interoperability on the Elastic Network; however, the implementation of this technology has faced delays. These delays raised concerns about the expected efficiency of additional investments in the Ignite program.
It is believed that allocating resources to a single blockchain-focused program like Ignite, without awaiting the completion of the current technological infrastructure, would not yield the desired impact in the long term. ZKsync prefers to direct its spending more wisely to remain competitive in the market.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
