#ZK# #PRAI# #EIGEN# #ETH# #SOL#

🚀 ZKSYNC PROJECT AND TOKEN BURN MECHANISM (ZK TOKEN BURN) 🔥

🆕 Update on the token burn mechanism

In September 2025, the zkSync community discussed a major upgrade for the ZK token, called ZIP-XX: Upgrade ZK Token with Permissionless Burn Function.

Upgrade objective
• 🆙 Upgrade ZK to ZKTokenV3 with:
• Burn permissionless: burn tokens publicly, no special permission required
• Role-Gated burn: controlled burn through roles
• 🔍 Public maxSupply on chain → increase transparency
• 🔄 Support ZKnomics: token economic model, including transaction fee burning → creating a deflationary mechanism
• 🛡️ Grant BURNER_ROLE_ADMIN to Protocol Governor Timelock → ensure safe governance

Expected impact
• 🔥 Burn mechanics: burn tokens from transaction fees, turning every network activity into value for holders.
• 💎 Staking pilot: combining ZKnomics staking with a target of 400 million ZK staked, where deleGate/stake to receive rewards without locking tokens.

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📊 Potential impact
• 💰 For ZK token:
• Create a deflationary mechanism
• Link the token value to network activities
• 🏛️ Governance:
• ZK holders can vote for Token Program Proposals (TPPs), including mint/burn to distribute tokens to developers and users.
• ⚠️ Risk:
• Need to audit carefully to avoid burn abuse
• The proposal emphasized the security review

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⏳ Current status (18/9/2025)
• 🗳️ Proposal is under discussion & vote on the forum zknation io
• ⏱️ If approved, the upgrade could be deployed in the coming weeks
• 🔹 No major burn has occurred before → this is the first step towards automatic burn

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Indeed, the token burn mechanism (token burn) and the deflationary model can create upward pressure on the price of the ZK token, but to say it will increase by 10–30 times requires consideration of many other factors. Let's analyze this further:

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🔥 The positive impact of the burn mechanism
1. Reduce the total circulating supply
• When ZK is burned from transaction fees and staking, the total supply decreases → if demand remains the same or increases, the price tends to rise.
2. Link the token value with network activities
• More transactions = more tokens being burned → holders benefit directly → creates long-term investment incentives.
3. Increase trust in governance and ZKnomics
• The transparent, permissionless burn function → creates a sense of safety and fairness → attracts investors.

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⚖️ Important restrictions to note
1. The market still determines the price
• Token prices depend on both liquidity, sentiment, and BTC/ETH market trends.
• Burning alone does not guarantee a price increase of 10–30 times.
2. The ability to burn is still limited in the early stage.
• The new ZIP-XX is just a proposal → automatic burn has not been implemented.
3. Competition and adoption
• If the zkSync network does not see strong adoption, the price of ZK is unlikely to increase significantly even if burning occurs.
4. Speculative risk
• Rumors about large burns can cause pump & dump, which is not sustainable.

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💡 Conclusion
• Burn token + deflationary model → create significant price increase opportunity.
• However, a 10–30x increase is an extremely optimistic scenario, occurring only if:
1. Adoption of zkSync is increasing significantly.
2. Continuous network activity and large trading volume.
3. The market sentiment is extremely positive, combined with a bullish trend in crypto overall.