In this article, we’ll outline the details regarding the zkLink Protocol’s native token, ZKL.

zkLink is a multi-chain Layer 3 rollup infrastructure based on zero-knowledge technology, secured with zk-SNARKs, that’s empowering the next generation of decentralized trading products such as order book DEXs, AMMs, NFT marketplaces, and more.

zkLink has built a ZK-Rollup middleware that natively connects to various Layer 1s and Layer 2s, with a wide array of high-level APIs, SDKs, and a trading-specific zkVM. Through zkLink, developers can easily deploy trading DApps with high customizability and access to aggregated liquidity which allows end users to benefit from a seamless multi-chain trading experience.

In addition, zkLink develops zero-knowledge blockchain solutions for high-performance ZK applications. zkLink’s core value proposition and product platforms, zkLink Origin and zkLink Nexus, are designed to provide solutions related to the blockchain’s Execution Layer and Settlement Layer.

Classic ZK-Rollups typically choose one chain as the Settlement Layer to maintain the ultimate security and integrity of off-chain transactions. Currently, most Layer 2 solutions utilize Ethereum as their Settlement Layer. However, zkLink introduces a new paradigm for ZK-Rollups, known as Multi-Chain Rollups, through two product solutions, zkLink Origin and zkLink Nexus.

zkLink Nexus is designed to bridge the gap among the different ZK-Rollup Layer 2 ecosystems to reduce liquidity fragmentation while providing security and scalability via zero-knowledge proofs. zkLink enhances the blockchain’s performance and reduces the cost of trading DApps. zkLink makes zero security compromises because it inherits the security characteristics of Ethereum.

ZKL is the native utility token and governance token for the zkLink protocol. ZKL helps developers unlock access to the zkLink rollup infrastructure service, including the ZK-proof markets. It’s also the governance token of the zkLink DAO, which governs the development of the protocol. ZKL will be a standard ERC20 token issued on the Ethereum Mainnet. The total supply of ZKL is capped at 1 billion and is non-inflationary. ZKL will also be made available on its connected chains. In summary, ZKL will be used to:

• Unlock zkLink rollup infra services

• Pay for zero-knowledge proof computational resources

• Govern zkLink’s development through the zkLink DAO

For more information about the zkLink protocol, check out our recently updated whitepaper blog article.

The ZKL token is primarily used inside App Rollups built on top of zkLink to pay fees related to a specific app’s function such as a CLOB, an NFT app, or a GameFi DApp, as well as to pay for the App Rollup’s zero-knowledge proof generation services that happen on the backend — which is done and provided by ‘provers’. In addition, ZKL is used for governance purposes to govern the zkLink Protocol, where ZKL holders participate in the protocol’s development by initiating and/or voting on proposals. Lastly, ZKL has additional perks such as providing discounted trading fees or usage fees for zkLink ecosystem DApps and other exclusive opportunities, which may be related to NFT mints or other platform incentives. These perks are initiated and decided on by the zkLink DAO.

1. Prover Fee: ZKL serves as the primary payment token for the zero-knowledge proof generation service offered by provers. To utilize zkLink’s App Rollup infrastructure solution, DApps need to pay fees to provers (prover fees) using ZKL. This fee is for the provers to do the computational work of generating ZKPs for off-chain transactions. In addition, provers need to stake ZKL to access the Proof Auction Market — where they earn ZKL rewards upon successful completion of a proof task. The Proof Auction Market is a smart contract that coordinates the zero-knowledge proving task, price bidding process, and manages the provers’ access, distributes the prover fees, and more. In summary, provers play an essential role within the protocol by contributing the computational resources necessary to compute and generate zero-knowledge proofs for off-chain transactions. Hence, the ‘prover fee’ is the first utility of ZKL.

2. License Fee for Rollup Infrastructure: DApps utilizing zkLink’s Rollup solution (App Rollups) pay an infrastructure license fee in ZKL to the zkLink DAO Vault, which is used to decide the fee structures for different types of DApps built on the App Rollups. However, an alternative payment option includes future revenue sharing. The zkLink DAO maintains the flexibility to modify the pricing structure. Moreover, in this process, App Rollups gather transaction fees or other fees (in ZKL) from users to sustain their ongoing business operations.

3. Governance: ZKL is the governance token for the zkLink protocol. ZKL holders have the right to participate in the governance of the protocol and its development by initiating and voting on proposals.

Additional information regarding the zkLink Protocol and our tokenomic model and utility can be found in our whitepaper.

ZKL has multiple use cases for applications and App Rollups built on zkLink’s infrastructure. In particular, just as any token works on a Layer 2 or within a particular DApp, ZKL is used to pay fees to the blockchain operators (analogically speaking) as well as royalties to a particular DApp or App Rollup. It can also be staked and used for governance purposes for those interested in shaping or having a voice in the future of ZK-powered applications and Layer 3 scaling solutions. Moreover, one of the main benefits and market dynamics that may bolster ZKL is zkLink’s low-transaction fee applications, especially on zkLink’s App Rollups, as well as its cheap cross-chain bridging functionality and interfacing with connected Layer 2s. As more development and applications are built on top of zkLink’s infrastructure via App Rollups, the demand and usage of ZKL will only grow. The industry is trending toward cheaper, app-specific, and highly customizable ZK scaling solutions and blockchains — therefore, ZKL has a significant likelihood of witnessing increased usage and demand in the coming years.

zkLink has a balanced distribution that includes multiple stakeholders such as the team, the community, the ecosystem, pre-sale individuals, private investors, the treasury, and liquidity. The specific percentages for ZKL’s distribution are featured in the diagram below.

At the moment, ZKL is scheduled for a Token Generation Event (TGE) in Q1 2024, in which ZKL will be released to the general public and launched into the marketplace. Nonetheless, regarding ZKL’s unlock schedule, zkLink has designed a stable vesting timeframe for when and how many ZKL tokens will hit the market.

ZKL tokens are locked in a smart contract and will be released according to a predefined schedule of a certain amount of tokens to be unlocked at TGE, with the rest followed by different monthly linear vesting timelines.

Vesting is generally regarded as a more strategic and flexible approach that benefits a project by aligning stakeholder interests, mitigating risks, and building community trust. In addition, this strategy helps to align stakeholders’ interests with the project’s long-term goals and discourages short-term profit-taking.

The ZKL token will serve as a pivotal element in the zkLink ecosystem. As both a utility and governance token, it has a multifaceted role in facilitating access to zkLink’s rollup infrastructure services and the ZK-Proof markets. However, ZKL’s importance extends beyond mere transactional and fee-based utility, it empowers developers with the tools necessary to harness the protocol’s capabilities in designing excellent ZK-powered App Rollups. Additionally, ZKL’s role as the zkLink DAO’s governance token underscores its significance in shaping the future development of the protocol. With a finite supply of 1 billion and its status as a standard ERC20 token on the Ethereum Mainnet, ZKL is set to be a non-inflationary asset that will also be accessible on connected chains. In essence, ZKL is more than just a token — it’s a key to unlocking the full potential of zkLink, paying for essential computational resources, and participating actively in the governance and evolution of the protocol.

In this article, we’ll outline the details regarding the zkLink Protocol’s native token, ZKL.

zkLink is a multi-chain Layer 3 rollup infrastructure based on zero-knowledge technology, secured with zk-SNARKs, that’s empowering the next generation of decentralized trading products such as order book DEXs, AMMs, NFT marketplaces, and more.

zkLink has built a ZK-Rollup middleware that natively connects to various Layer 1s and Layer 2s, with a wide array of high-level APIs, SDKs, and a trading-specific zkVM. Through zkLink, developers can easily deploy trading DApps with high customizability and access to aggregated liquidity which allows end users to benefit from a seamless multi-chain trading experience.

In addition, zkLink develops zero-knowledge blockchain solutions for high-performance ZK applications. zkLink’s core value proposition and product platforms, zkLink Origin and zkLink Nexus, are designed to provide solutions related to the blockchain’s Execution Layer and Settlement Layer.

Classic ZK-Rollups typically choose one chain as the Settlement Layer to maintain the ultimate security and integrity of off-chain transactions. Currently, most Layer 2 solutions utilize Ethereum as their Settlement Layer. However, zkLink introduces a new paradigm for ZK-Rollups, known as Multi-Chain Rollups, through two product solutions, zkLink Origin and zkLink Nexus.

zkLink Nexus is designed to bridge the gap among the different ZK-Rollup Layer 2 ecosystems to reduce liquidity fragmentation while providing security and scalability via zero-knowledge proofs. zkLink enhances the blockchain’s performance and reduces the cost of trading DApps. zkLink makes zero security compromises because it inherits the security characteristics of Ethereum.

ZKL is the native utility token and governance token for the zkLink protocol. ZKL helps developers unlock access to the zkLink rollup infrastructure service, including the ZK-proof markets. It’s also the governance token of the zkLink DAO, which governs the development of the protocol. ZKL will be a standard ERC20 token issued on the Ethereum Mainnet. The total supply of ZKL is capped at 1 billion and is non-inflationary. ZKL will also be made available on its connected chains. In summary, ZKL will be used to:

• Unlock zkLink rollup infra services

• Pay for zero-knowledge proof computational resources

• Govern zkLink’s development through the zkLink DAO

For more information about the zkLink protocol, check out our recently updated whitepaper blog article.

The ZKL token is primarily used inside App Rollups built on top of zkLink to pay fees related to a specific app’s function such as a CLOB, an NFT app, or a GameFi DApp, as well as to pay for the App Rollup’s zero-knowledge proof generation services that happen on the backend — which is done and provided by ‘provers’. In addition, ZKL is used for governance purposes to govern the zkLink Protocol, where ZKL holders participate in the protocol’s development by initiating and/or voting on proposals. Lastly, ZKL has additional perks such as providing discounted trading fees or usage fees for zkLink ecosystem DApps and other exclusive opportunities, which may be related to NFT mints or other platform incentives. These perks are initiated and decided on by the zkLink DAO.

1. Prover Fee: ZKL serves as the primary payment token for the zero-knowledge proof generation service offered by provers. To utilize zkLink’s App Rollup infrastructure solution, DApps need to pay fees to provers (prover fees) using ZKL. This fee is for the provers to do the computational work of generating ZKPs for off-chain transactions. In addition, provers need to stake ZKL to access the Proof Auction Market — where they earn ZKL rewards upon successful completion of a proof task. The Proof Auction Market is a smart contract that coordinates the zero-knowledge proving task, price bidding process, and manages the provers’ access, distributes the prover fees, and more. In summary, provers play an essential role within the protocol by contributing the computational resources necessary to compute and generate zero-knowledge proofs for off-chain transactions. Hence, the ‘prover fee’ is the first utility of ZKL.

2. License Fee for Rollup Infrastructure: DApps utilizing zkLink’s Rollup solution (App Rollups) pay an infrastructure license fee in ZKL to the zkLink DAO Vault, which is used to decide the fee structures for different types of DApps built on the App Rollups. However, an alternative payment option includes future revenue sharing. The zkLink DAO maintains the flexibility to modify the pricing structure. Moreover, in this process, App Rollups gather transaction fees or other fees (in ZKL) from users to sustain their ongoing business operations.

3. Governance: ZKL is the governance token for the zkLink protocol. ZKL holders have the right to participate in the governance of the protocol and its development by initiating and voting on proposals.

Additional information regarding the zkLink Protocol and our tokenomic model and utility can be found in our whitepaper.

ZKL has multiple use cases for applications and App Rollups built on zkLink’s infrastructure. In particular, just as any token works on a Layer 2 or within a particular DApp, ZKL is used to pay fees to the blockchain operators (analogically speaking) as well as royalties to a particular DApp or App Rollup. It can also be staked and used for governance purposes for those interested in shaping or having a voice in the future of ZK-powered applications and Layer 3 scaling solutions. Moreover, one of the main benefits and market dynamics that may bolster ZKL is zkLink’s low-transaction fee applications, especially on zkLink’s App Rollups, as well as its cheap cross-chain bridging functionality and interfacing with connected Layer 2s. As more development and applications are built on top of zkLink’s infrastructure via App Rollups, the demand and usage of ZKL will only grow. The industry is trending toward cheaper, app-specific, and highly customizable ZK scaling solutions and blockchains — therefore, ZKL has a significant likelihood of witnessing increased usage and demand in the coming years.

zkLink has a balanced distribution that includes multiple stakeholders such as the team, the community, the ecosystem, pre-sale individuals, private investors, the treasury, and liquidity. The specific percentages for ZKL’s distribution are featured in the diagram below.

At the moment, ZKL is scheduled for a Token Generation Event (TGE) in Q1 2024, in which ZKL will be released to the general public and launched into the marketplace. Nonetheless, regarding ZKL’s unlock schedule, zkLink has designed a stable vesting timeframe for when and how many ZKL tokens will hit the market.

ZKL tokens are locked in a smart contract and will be released according to a predefined schedule of a certain amount of tokens to be unlocked at TGE, with the rest followed by different monthly linear vesting timelines.

Vesting is generally regarded as a more strategic and flexible approach that benefits a project by aligning stakeholder interests, mitigating risks, and building community trust. In addition, this strategy helps to align stakeholders’ interests with the project’s long-term goals and discourages short-term profit-taking.

The ZKL token will serve as a pivotal element in the zkLink ecosystem. As both a utility and governance token, it has a multifaceted role in facilitating access to zkLink’s rollup infrastructure services and the ZK-Proof markets. However, ZKL’s importance extends beyond mere transactional and fee-based utility, it empowers developers with the tools necessary to harness the protocol’s capabilities in designing excellent ZK-powered App Rollups. Additionally, ZKL’s role as the zkLink DAO’s governance token underscores its significance in shaping the future development of the protocol. With a finite supply of 1 billion and its status as a standard ERC20 token on the Ethereum Mainnet, ZKL is set to be a non-inflationary asset that will also be accessible on connected chains. In essence, ZKL is more than just a token — it’s a key to unlocking the full potential of zkLink, paying for essential computational resources, and participating actively in the governance and evolution of the protocol.