What is ZKsync?
ZKsync is a family of Ethereum scaling networks built by Matter Labs that use zero-knowledge proofs to show Ethereum their transactions were processed correctly. Its main public chain, ZKsync Era, charges fees in ETH. ZK is the governance token: holders vote on upgrades and token programs, while proposals to give it fee and staking roles are still being worked out.
Utility Lens
What ZKsync actually does
Lets apps and institutions run cheaper or private chains whose correctness is proven to Ethereum with zero-knowledge proofs; ZK governs that network.
- Real-world usage
- earlyZKsync Era is live but its daily public activity is now small, and the bank-focused Prividium work is mostly in pilots and partnerships rather than disclosed production volume.
- Token necessity
- optionalFees on ZKsync Era are paid in ETH and the chain runs without ZK; the token's live role is governance, with fee and staking roles still at the proposal or pilot stage.
- Decentralization
- limitedL2BEAT rates ZKsync Era Stage 0, Matter Labs runs the sequencer and prover, and a security council can push instant upgrades without the normal delay.
- Track record
- developingZKsync Era launched in March 2023; a compromised admin key let an attacker take about $5 million of unclaimed airdrop tokens in April 2025 (mostly returned), and Matter Labs halted proof production in July 2025 after a circuit bug was found, then shipped an emergency fix on August 1 with no funds lost.
What it’s used for
People use ZKsync Era to swap, lend and trade with fees paid in ETH, though public activity has fallen well below its 2023–2024 levels. Matter Labs now focuses on Prividium, a version of the stack that lets banks run private chains that still prove their state to Ethereum. ZK holders delegate votes on protocol upgrades and token grants, and some have staked ZK in a pilot that rewards delegating to active voters.
Role of the ZK token:
Evidence of real use
- L2BEAT rates ZKsync Era a Stage 0 ZK rollup with ETH as its gas token and notes a 4–8 day upgrade delay that an Emergency Upgrade Board can skip. Source (opens in a new tab)
- ZKsync's token page describes ZK as a governance token with a fixed 21 billion supply and says a ZK-based settlement layer (ZKsync Gateway) is built but would need a future governance proposal to go into production. Source (opens in a new tab)
- Season 1 of the ZKnomics staking pilot (February 9 to May 11, 2026) peaked at 355 million ZK staked by 4,397 addresses and paid 5.3 million ZK in rewards. Source (opens in a new tab)
- On October 5, 2026, Matter Labs signed a memorandum of understanding with NexBridge to market Prividium to Japanese banks, trust banks and securities firms. Source (opens in a new tab)
How ZKsync works
ZKsync Era is a ZK rollup. A sequencer run by Matter Labs orders and executes transactions, and a prover produces a zero-knowledge proof that the batch was handled correctly. A contract on Ethereum checks that proof before accepting the new state. Finalized withdrawals then wait out an execution delay, which ZKsync Era raised from 3 hours to 24 hours on October 7, 2026 to give security teams more time to catch problems. Fees are paid in ETH. L2BEAT rates the chain Stage 0, meaning users still depend on its operators in some failure cases.
ZKsync Era runs a custom virtual machine called EraVM. In September 2026 Matter Labs said a transition to retire EraVM will begin within six months, with new development moving to ZKsync Atlas, a newer system that runs the standard Ethereum Virtual Machine with Matter Labs' Airbender prover. Holders keeping coins in an ordinary wallet have nothing to do yet; anyone whose money sits inside a contract, such as a multisig or a DeFi position, will have to act later, following steps and dates Matter Labs has promised to publish. Until then, EraVM receives security maintenance only.
ZK is the governance token. Holders and delegates vote in the Token Assembly, while a Security Council reviews upgrades and Guardians act as an emergency check. Tokens reach programs through capped minters, contracts allowed to mint up to a set amount, including a 2026 grant of 67 million ZK a month to Matter Labs. Matter Labs proposed in November 2025 to route interoperability fees and enterprise licensing income into ZK staking rewards and buybacks, and a staking pilot ran in 2026, but as of October 2026 ZK is not used for gas on Era.
Key moments
- 2020Matter Labs launches ZKsync Lite, an early ZK rollup for payments on Ethereum.
- 2023ZKsync Era, an EVM-compatible ZK rollup, opens on mainnet in March.
- 2024The ZK token launches in June with a 3.675 billion token airdrop that draws criticism over Sybil filtering.
- 2025A compromised admin key drains unclaimed airdrop tokens in April; the Atlas upgrade arrives in October and a ZK fee-and-buyback plan is proposed in November.
- 2026ZKsync Lite stops producing blocks on May 4; Matter Labs announces EraVM's retirement in September and a Japan Prividium deal on October 5.
Supply
ZK has a cap of 21 billion tokens (one that a governance-approved protocol upgrade could raise), minted over time through capped-minter contracts rather than all at once. About 17.5% went to a 2024 airdrop, roughly a third to investors and Matter Labs staff, and the rest to the ZKsync Foundation and Token Assembly. Investor and team tokens unlock monthly, up to about 0.8% of supply each month, until June 2028. There is no burn today; a buyback-and-burn design has been proposed but needs governance approval.
Risks to understand
- Migration risk: EraVM is being retired, and users with funds in smart contracts on ZKsync Era will need to act once Matter Labs publishes steps and dates.
- Centralization: L2BEAT rates ZKsync Era Stage 0, Matter Labs runs the sequencer and prover, and instant security upgrades can skip the normal delay; Matter Labs also now delays publishing some Era code for three months.
- Weak token link: ZK has no live fee or gas role on Era, and plans to tie it to network revenue depend on future governance votes and real enterprise demand.
- Supply pressure: monthly investor and team unlocks continue to June 2028, and governance has approved new ZK grants such as 67 million ZK a month to Matter Labs in 2026.
- Key and contract risk: the April 2025 airdrop exploit came from a single compromised admin key, a reminder that admin powers around the token can fail.
ZKsync FAQ
Do I pay gas on ZKsync Era in ZK?
No. Gas on ZKsync Era is paid in ETH. ZK is mainly a governance token, and plans to give it fee roles are not active on Era as of October 2026.
What is Prividium?
Prividium is Matter Labs' platform for private, permissioned chains run by banks and other institutions. Their data stays private, but zero-knowledge proofs of their state are checked on Ethereum.
What happened in the April 2025 ZKsync hack?
An attacker used a compromised admin key to take about 111 million unclaimed airdrop tokens. ZKsync said user funds and the protocol were not affected, and the attacker returned most of the value in exchange for a 10% bounty.
Why did ZKsync Era withdrawals get slower in October 2026?
After a governance vote, ZKsync Era raised its minimum execution delay from 3 hours to 24 hours on October 7, 2026, giving security teams more time to stop a bad batch before it becomes final on Ethereum.
Sources
- ZKsync Era (opens in a new tab) — L2BEAT
- ZK token (opens in a new tab) — ZK Nation
- $ZK token (opens in a new tab) — ZKsync
- Hardening EraVM: new security measures and the transition ahead (opens in a new tab) — ZKsync
- Update on ZIP-17: ZKsync Era execution delay increasing to 24 hours (opens in a new tab) — ZK Nation forum
- ZKsync discloses $5 million attack from compromised airdrop admin account (opens in a new tab) — The Block
- ZKsync proposes utility and revenue focused tokenomics shift (opens in a new tab) — The Defiant
- NexBridge and Matter Labs partner to put Japan's financial institutions in control of their digital asset infrastructure (opens in a new tab) — ZKsync
Last reviewed October 10, 2026. Written by Dave McNaught. Utility Lens ratings are editorial judgments, not investment advice. Market data from CoinGecko. Spot an error? Request a correction.
Dave McNaught
Dave McNaught has worked in IT since 1999 and founded All Business Technologies (ABT) in 2003, a Boston-area firm providing Managed IT, Cybersecurity, Managed AI, Web Design and App Development. He publishes The Crypto Guide.