ZKSync Sunsets liquidity program 'Ignite'

• ZKsync canceled the second season of its incentive program Ignite.
• The bear market conditions led to the move.
• ZKSync will distribute all remaining rewards by March 17, 2025.

ZKSync announced on Friday that it canceled the second season of his liquidity program Ignite.

The zero-knowledge-layer-2 protocol showed that the move is made under the current bear market conditions, which have destroyed the mood in particular and have dropped the prices.

via ZKSync, the decentralized financial incentive program will be hired on March 17, 2025.

"After careful examination, the Defi -Letening Committee (DSC) decided not to renew the Ignite for season second, and will be the program from March 17, 2025 by switching off the rewards for the 6th anniversary" thread on x .

The Defi steering committee (DSC) quoted several reasons for sunset ignition. It includes the bearish conditions of the cryptocurrency market. This has prompted ZKSync to pursue a more conservative expenditure at short to medium term, according to the platform.

Why ignited?

A cautious approach aims to ensure the sustainability of the ZKSYNC and Elastic Network ecosystem. It is a step in which the protocol is avoided unnecessary expenses against prevailing headwinds.

ZKSync added to X in the update:

"Unfortunately we are currently navigating in a bearish market. In accordance with many other ecosystems, ZKSync has decided to respond to these developing conditions for conservative. To remain sustainable, we tighten our focus and spend smarter instead of fighting against headwind."

focus on elastic network

In addition, ZKSync is leading resources for its long-term view: the elastic network, an extended verifiable blockchain network that is operated by zero knowledge proofs. The team is of the opinion that it no longer corresponds to this goal, in particular as a native interoperability in the entire elastic network-decisive for seamless cross-chain interactions, corresponds to delays.

The Ignite program, which was started to increase liquidity in the ZKSync era and positioned it as a Defi -Hub, has fulfilled its purpose, but is now considered less critical in view of these technological and market management.

ZKSync will distribute all remaining rewards by March 17, 2025, with service contracts to be completed by March 30, 2025.

The ZKSync -token acted a little higher despite the news, with ZK hovering almost $ 0.06982 US dollars at the time of the letter on March 14th. The price of the old coin rose by almost 5%in 24 hours. After a recent sale, it remained 16% last week.