Layer-2 network ZKsync has revealed plans to discontinue the Ignite Program, which incentivized users for providing liquidity, citing unfavorable market conditions as the primary reason.
“After thorough evaluation, the DeFi Steering Committee (DSC) has chosen not to renew Ignite for its second season and will begin winding down the program on March 17th, 2025, by ceasing rewards for period 6,” ZKsync shared on its social media platform.
The organization emphasized that its long-term strategy is focused on the Elastic Network, which includes various chains within the ZKsync ecosystem.
“Regrettably, we are currently facing a bearish market. Like many ecosystems, ZKsync has opted to adopt a more cautious approach regarding expenditures in the short to medium term amidst these changing circumstances,” they stated. “To maintain sustainability, we are narrowing our focus and optimizing our spending instead of struggling against prevailing challenges.”
The total value locked (TVL) on ZKsync has decreased by approximately 50% since January 30, as the broader cryptocurrency market is undergoing a correction, with Bitcoin and Ether experiencing declines of 13% and 27% respectively over the past month.
During the same timeframe, ZKsync’s native token has fallen by 35%.